66

6768

The information here is the same for answering questions 66 to 68. A firm wants to determine how many units of each version (Deluxe and Elite) of products they should produce to maximize the total profit. The profit for Deluxe is $100 per unit and for Elite $87 per unit. Although the firm can readily sell any amount of either version, the sales volume is limited by its total labor hours and total machine hours available. The total labor hours per week are 4,000. Deluxe takes 5 hours of labor per unit and Elite takes 7 hours of labor per unit. The total machine hours are 5,000 per week. Deluxe takes 9 hours of machine time per unit and Elite version takes 3 hours of machine time per unit. The firm formulates the problem into a linear program and solves it using Excel, with the following sensitivity report. Adjustable Cells Objective Allowable Allowable Cell Coefficient $C$4 Production per week Deluxe $D$4 Production per week Elite 229.1666667 Name Final Value 479.1666667 Reduced Cost 0 0 100 87 Increase Decrease 161 37.85714286 53 53.66666667 Constraints Cell Name $E$15 Labor hours Used SE $16 Machine hours Used Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease 4000 10.0625 4000 7666666667 1222 222222 5000 5 520833333 5000 2200 3285.714286 Which constraint(s) is/are binding? Machine hours capacity only Demand for Elite Demand for Deluxe Both Labor hours capacity and Machine hours capacity Labor hours capacity only How much is the firm willing to pay for an additional 1190 machine hours per week? Choose the closest number if needed. $20.215 $6,571 alla $4.400 $11.041 $4.558 If the profit for a unit of Deluxe has increased by $10, then what is the total profit of the form using the optimal production quantities? Choose the closest number if needed. $80,345 $70,146 $67,854 $75,625 $72.646