Consider Figure 4.20, which shows the Sensitivity Report for the Burn-Off Diet Drink example in Section 4.7.

Question:

Consider Figure 4.20, which shows the Sensitivity Report for the Burn-Off Diet Drink example in Section 4.7. For each of the situations described below, check to see if the 100% rule can be used to determine the impact of the simultaneous changes described. If so, compute the total change in cost. Each question is independent of the other questions.

(a) The cost of ingredient B increases by $0.05, and the cost of ingredient A increases by $0.05.

(b) The cost of ingredient C decreases by $0.02, and the chemical Y requirement increases by 30.

(c) The cost of ingredient A increases by $0.02, and the cost of ingredient D increases by $0.03.

(d) The chemical X requirement decreases by 3, the chemical Y requirement increases by 1, and the chemical Z max limit increases by 6.

(e) The daily dosage minimum decreases by 1, and the daily dosage maximum decreases by 3.

(f) The daily dosage maximum increases by 20, and the chemical X requirement increases by 35.


Figure 4.20

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Managerial Decision Modeling Business Analytics With Spreadsheet

ISBN: 9781501515101

4th Edition

Authors: Nagraj Balakrishnan, Barry Render, Ralph Stair, Charles Munson

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