Banner Tools produces two styles of steel hammers with wooden handles.The first sells for $6 and consists of .5 pounds of steel; the second sells for $15 and consists of 1 pound of steel.Since steel costs the firm $4 per pound and the handle, labor, and packaging costs amount to $1 for either hammer, the profits coefficients are $6 - .5($4) - $1 = $3 for the smaller hammer and $15 - 1($4) - $1 = $10 for the larger hammer.Thus the objective function for this model is MAX 3X₁ + 10X₂.Given that the shadow price for steel is $2, which of the following statements is correct? A)Banner should not buy more steel. B)Banner should buy all the steel it can only if it can purchase it for less than $2 per pound. C)Banner should buy at least as much as the "ALLOWABLE INCREASE", but only if it can be purchased for less than $2 per pound. D)Banner should buy at least as much as the "ALLOWABLE INCREASE", but only if it can be purchase for less than $6 per pound.

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The Answer of Banner Tools produces two styles of steel hammers with wooden handles.The first sells for $6 and consists of .5 pounds of steel; the second sells for $15 and consists of 1 pound of steel.Since steel costs the firm $4 per pound and the handle, labor, and packaging costs amount to $1 for either hammer, the profits coefficients are $6 - .5($4) - $1 = $3 for the smaller hammer and $15 - 1($4) - $1 = $10 for the larger hammer.Thus the objective function for this model is MAX 3X₁ + 10X₂.Given that the shadow price for steel is $2, which of the following statements is correct? A)Banner should not buy more steel. B)Banner should buy all the steel it can only if it can purchase it for less than $2 per pound. C)Banner should buy at least as much as the "ALLOWABLE INCREASE", but only if it can be purchased for less than $2 per pound. D)Banner should buy at least as much as the "ALLOWABLE INCREASE", but only if it can be purchase for less than $6 per pound.

Banner Tools Produces Two Styles of Steel Hammers with Wooden