The Hongs family owns 410 acres of farmland in Waimea on which they grow corn and tobacco. Each acre of corn costs $105 to plant, cultivate, and harvest; each acre of tobacco costs $210. The Bradleys have a budget of $52,500 for next year. The government limits the number of acres of tobacco that can be planted to 100. The profit from each acre of corn is $300; the profit from each acre of tobacco is $520. The Bradleys want to know how many acres of each crop to plant to maximize their profit.
a. How many acres of farmland will not be cultivated at the optimal solution? Do the Hongs use the entire 100-acre tobacco allotment?
b. What would the profit for corn have to be for the Hongs to plant only corn?
c. If the Hongs can obtain an additional 100 acres of land, will the number of acres of corn and tobacco they plan to grow change?
d. If the Hongs decide not to cultivate a 50-acre section as part of a crop recovery program, how will it affect their crop plans?
e. The Hongs have an opportunity to lease some extra land from a neighbor. The neighbor is offering the land to them for $110 per acre. Should the Hongs lease the land at that price? What is the maximum price the Hongs should pay their neighbor for the land, and how much land should they lease at that price?
f. The Hongs are considering taking out a loan to increase their budget. For each dollar they borrow, how much additional profit would they make? If they borrowed an additional $1,000, would the number of acres of corn and tobacco they plant change?
