I have 7 hectares of land in the Philippines which can be planted to rice (X1) and/or corn (X2). I also have 72 days of labor and 72 tons of fertilizer.
One hectare of rice requires 6 days f labor and 12 tons of fertilizer. One hectare of corn requires 12 days of labor and 6 tons of fertilizer. The cost of water is $10 per ton, labor is $20 per day, and land can be rented for $10 per cropping season.
One hectare of rice can produce 3 tons which can be sold for $150 per ton. One hectare of corn can produce 5 tons which can be sold for $120 per ton.
Using graphic analysis:
1. State the objective function
2. State the constraint functions
3. Find the optimum number of hectares that must be planted to rice or corn to maximize
4. Estimate the maximum profit
Using the computer, validate you answers to questions 3 and 4 above.
A Complete, Neat and Step-by-step Solution is provided in the attached Excel file.