A manufacturing facility that produces table surfaces for tables and desks utilizes three manufacturing processes: cutting, sanding and finishing. There are limited resources for each of these processes. Assume that the decision variables are defined to represent the number of dining table surfaces produced per week and the number of office desk surfaces produced per week. Assume that the objective function is a profit maximization objective.

Assume that you are given the answer report and the sensitivity report (see below). Answer questions A - E.

QUESTIONS:

A) If the Unit Profit on Tables increased to $700 would the optimal solution change? Why or Why not?

B) If the unit profit on DTables increased to $700 what is the MAX Profit?

C) If the Unit profit on Desks decreased to $200 would the optimal solution change? Why or Why not?

D) If 20 additional hours of cutting capacity became available in a given week, what would be the total profit that the company could earn?

E) Suppose another Company XYZ wanted to use 15 hours of the sanding capacity in a week and was willing to pay $400 an hour to acquire it. Should they (the manufacutring company) agree to this? Why or Why Not?

Microsoft Excel 16.0 Sensitivity Report Worksheet: Variable Cells Final Value Cell $B$3 $C$3 Name Variables Qty Dining Table Variables Qty Office Desk Reduced Cost 0 0 Objective Coefficient 500 400 Allowable Increase 300 350 Allowable Decrease 233.3333333 150 20 40 Constraints Final Value Shadow Price Constraint R.H. Side 40 40 Allowable Decrease 13.33333333 Cell $D$7 $D$8 $D$9 350 Name Cutting Used Sanding Used Finishing Used Allowable Increase 40 6.666666667 1E+30 40 40 300 20 50 0 60 10 Microsoft Excel 16.0 Answer Report Worksheet: Result: Solver found a solution. All Constraints and optimality conditions are satisfied. Solver Engine Engine: Simplex LP Solution Time: 0.016 Seconds. Iterations: 2 Subproblems: 0 Solver Options Max Time Unlimited, Iterations Unlimited, Precision 0.000001, Use Automatic Scaling Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative Objective Cell (Max) Cell $D$4 Name Unit profit Total Profit Original Value Final Value 0 26000 Variable Cells Cell $B$3 $C$3 Name Variables Qty Dining Table Variables Qty Office Desk Original Value Final Value Integer 0 20 Contin 0 40 Contin Constraints Slack Cell $D$7 $D$8 $D$9 Name Cutting Used Sanding Used Finishing Used Cell Value Formula Status 40 $D$7