Tracksaws, Inc. makes tractors and lawn mowers. The firm makes a profit of $30 on each tractor and $30 on each lawn mower, and they sell all they can produce. The time requirements in the machine shop, fabrication, and tractor assembly are given in the table.
Formulation:
Let x = number of tractors produced per period
y = number of lawn mowers produced per period
The graphical solution is shown below.
-What is the maximum amount a manager would be willing to pay for one additional hour of machining time?
Correct Answer:
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