Exhibit 81
the Following Questions Pertain to the Problem and Spreadsheet

Exhibit 8.1
The following questions pertain to the problem and spreadsheet below.
A company makes products A and B from 2 resources,labor and material.The company wants to determine the selling price which will maximize profits.A unit of A costs 25 to make and demand is estimated to be 20 ? .10 * Price of A.A unit of B costs 18 to make and demand is estimated to be 30 ? .07 * Price of B.The utilization of labor and materials and the available quantity of resources is shown in the table.A reasonable price for the products is between 100 and 200.
$\begin{array}{lccc}\text { Product } & \text { A } & \text { B } & \text { Avalable resources } \\\hline \text { Labor hr/unit) } & 3 & 2 & 150 \\\text { Material ounces/unit) } & 1 & 2 & 200 \\\text { Manufacturing cost\$/unit) } & 25 & 18 & \\\text { Demand units) } & 20-.10^{*} \mathrm{P}_{1} & 30-.07^{*} \mathrm{P}_{2} &\end{array}$
Let X₁ = demand for As and X₂ = demand for Bs.Let P₁ = price for As and P₂ = price for Bs

-How much are additional units of Labor worth based on the following sensitivity report?
Changing Cells
Final Reduced
Cell Name Value Gradient
$B$4 ^{Number to make: X}₁ 9.42 0
$C$4 ^{Number to make: X}₂ 1.71 0
Constraints
Final Lagrange
Cell Name Value Multiplier

A) 0
B) 1.21
C) 2.57
D) 9.42
$D$8 Wood 42 0
$D$9 Labor 132 1.21
$D$10 Plywood 24 2.57