BUSI 354 - Cost Accounting Homework Assignment #1 A Note on Academic Dishonesty Please remember that this homework is being graded on completion. Full marks will be awarded if you prepare your own solution and show your work. No grades will be awarded for any final answers provided without any supporting work. Do not plagiarize or commit academic dishonesty! I have a zero-tolerance policy. Plagiarized or dishonest assignments will be reported to the Dean's office, regardless of the excuse. Plagiarism and academic dishonesty include: Handing in the work of others. Communicating with peers/others. Aiding others in the completion of their exam. o Collaborating with others, Including on any messenger apps (Le. Whatsapp, Facebook, Messenger, etc.) (This is not a group exam!) O Googling/searching for answers on the Internet. (You will not find it). O Hiring/paying/soliciting external help (L.e. Chegg, Coursehero, etc.). Using ChatGPT or other chatbots to complete your assignment. If I find this assignment posted by you on a website like Chegg, Coursehero, or Studocu, I will award 3 0 and submit your assignment for academic dishonesty. Linear Programming and Solver You Spice Up My Life manufactures three types of luxury hot sauce: the Mild, Medium, and Hot. You Spice Up My Life is known for using premium ingredients such as chili peppers that can only be found to grow at the top of the Himalayas. Because of how much work it takes to harvest and process these chili peppers, the hot sauce is extremely expensive. The Mild sells for $12,000 per bottle and has a variable cost of $7,000 per bottle. The Medium sells for $11,000 per bottle and has a variable cost of $8,500 per bottle. The Hot sells for $10,000 per bottle and has a variable cost of $8,000 per bottle. To manufacture the perfect bottle, each bottle of hot sauce (regardless of type) must go through three machines. The amount of hours consumed by each hot sauce type Is shown below: Mild (machine Medium Hot (machine hours) (machine hours) hours) Machine 1 4 Machine 2 6 Machine 3 3 Machine 1 has a capacity of 24,000 machine hours, Machine 2 has a capacity of 36,000 machine hours, and Machine 3 has a capacity of 32,000 machine hours.Required: 1. Currently, demand exceeds what You Spice Up My Life can supply. Use Excel Solver to determine the current optimal production plan for You Spice Up My Life. a. Populate the sensitivity report. b. In bullet points, analyze the results. 2. The marketing department wants to hire a Tiktok celebrity to promote all three hot sauce types in a marketing campaign. To do this, they have asked that you manufacture at least 300 units of the Mild, 300 units of the Medium, and 300 units of the Hot. Use Excel Solver to determine the optimal production plan for You Spice Up My Life given this new fact. a. Populate the answer and sensitivity reports. b. In bullet points, analyze the results. Be specific. 3. In question #2, how much would the contribution margin go up by If 1 additional machine hour of Machine 1 became available? 4. Assume that In question #2, you can purchase extra machine hours for each machine in 1,000 unit increments, as follows: i. 3,000 machine hours of Machine 1 are available, at a cost of $22,000 per 1,000 machine hours. ii. 2,000 machine hours of Machine 2 are available, at a cost of $250,000 per 1,000 machine hours. iii. 1,000 machine hours of Machine 3 are available, at a cost of $625,000 per 1,000 machine hours. iv. You may not buy partial increments. What should you do? How much will the contribution margin go up by? What is the new optimal production plan? 5. In addition to the extra resources available for purchase in question #4, an external supplier has offered to supply 1,000 hours of Machine 3, at a cost of $750,000. Should You Spice Up My Life accept the offer or not? You must buy all 1,000 hours or none at all. Provide qualitative and quantitative analyses. Submit your final assignment to Canvas. Only the following file types are to be accepted: PDF, XLS, XLSX, DOC, and DOCX. JPEGs are not permitted. Please submit only one document (multiple files are not permitted). Copies e-mailed to the instructor will not be accepted