B$.($Sensitivity Analysis$).$ Independent of A$.$ Your answers and justifications for this part should

be based only on the sensitivity report provided below and NOT on the Excel sheet used in

A$.$

Variable Cells

Constraints

$**1E+30$ : This symbol indicates a very large number

a$)$ What is the optimal daily production plan? What is the total daily profit?

b$)$ Marketing discovered that customers are actually willing to pay $$98$ for Product A$.$ They are

considering this move but are worried that this might affect the production quantities already

contracted.

What is your take on this? What would be the new revenues if they increase the price? Explain

carefully.

c$)$ A strike in one of the plants reduced by $15$ hours the available labor time? Would that affect your

profit? If yes by how much?

d$)$ Sales people are upset with the recommended plan. They have predicted a demand of $16$ units for

Product A while the recommendation $($based on the above$)$ is to produce $10$ units. They are upset

that you are leaving money on the table. How would you justify this decision to the sales people?