1)Formulate the problem into a LP model

2)What is the optimal solution, and what is the optimal objective function value? Show Excel Solver process and sensitivity reports.

3)Suppose that the daily budget for maintenance has increased by $20. According to the sensitivity report, how does the optimal objective function value change?

A bike rental company needs to purchase new bikes for an upcoming holiday season. The available budget is $12,000. The bikes can be purchased from two manufacturers A and B. The company would like to purchase at least 100 bikes and would like to purchase the same number from manufacturer A as from manufacturer B to maintain good will. The price, maintenance cost, expected revenue of each model are given in the following table. Daily Daily expected Manufacturer Model Price per unit maintenance revenue per unit cost per unit Hound $70 $3 $10 A Eagle $110 $5 $14 Mi $80 $2 $9 B Racer $120 $4 $17 The daily budget for maintenance is $330. The company wants to determine the number of each model to purchase to maximize the total daily revenue