First convert the problem into maximization form and introducing the surplus variables and artificial variable to convert the problem in standard form.
Max Z = –x1 – 4x2 + 0S1 + 0S2 – MA1 – MA2
S.T.
2x1 + x2 – S1 + A1 = 4
x1 + 7x2 – S2 + A2 = 7
x1, x2, S1, S2, A1, A2 ≥ 0
The initial solution is given by
x1 = x2 = 0, A1 = 4, A2 = 7.
Now prepare the initial simplex table.
Initial simplex table

Here, all the values of Zj – Cj are not positive. Therefore, solution is not optimum. To find optimum solution, select the most negative value of Zj – Cj . Here, Z2 – C2 = –8M – 4 is the most negative value. It will enter in the basis and corresponding column is treated as key column. Find key row by taking min \(\left(\frac{X_B}{x_2}\right) = \min \left(\frac 41, \frac 77\right)\) = min (4, 1) = 1.
Artificial variable A2 will leave the basis. 7 is treated as key element. Make it unity and other element of key column to zero by applying matrix row transformation.
First simplex table

Here, all values of Zj – Cj are not positive.
Optimality condition is not satisfied. Now
R1 → 7/13 R1 and then taking
R2 → R2 – 1/7 R1, we have second simplex table.
Second simplex table

Here all the values of Zj – Cj are positive and no artificial variable appears in optimum basis. Therefore, the required solution is given by
x1 = \(\frac{21}{13}\), x2 = \(\frac{10}{13}\), and min Z = \(\frac{82}{13}\)