Question: C - town brewery brews two beers: Expansion Draft and Burning River. Expansion Draft sells for $ 2 0 per barrel, while Burning River sells

C-town brewery brews two beers: Expansion Draft and Burning River.
Expansion Draft sells for $20 per barrel, while Burning River sells for $8 per barrel.
Producing a barrel of Expansion draft takes 8 pounds of corn and 4 pounds of hops. Producing a barrel of Burning River requires 2 pounds of corn, 6 pounds of rice, and 3 pounds of hops. The brewery has 500 pounds of corn, 300 pounds of rice, and 400 pounds of hops.
Lady Giga is a marketing manager at C-town brewery and she started to formulate the above problem using Excel to maximize C-towns revenue. Her worksheet and solver entries can be found below.
(a) What is the Excel formula in Cell C12?(What did Lady Giga type in Cell C12?)
(b) What is the Excel formula in Cell C15?(What did Lady Giga type in Cell C15?)
After clicking on Solve, the optimal decision variables turn out to be 50 and 50, respectively. Lady Giga generated the following sensitivity report:
Variable Cells
Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease
$C$2 Expansion Draft 50020
12
20 $D$2 Burning River
500
81E+30
3
Constraints Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$C$15 Corn Used 500
2.5500100400 $C$16 Rice Used 300
0.5300150
300 $C$17 Hops Used
350
0
4001E+30
50
(c) What is the optimal objective value?
(d) If C-town brewery has 120 additional pounds of corn, by how much will the optimal revenue
increase?
(e) If C-town brewery lost 120 pounds of rice, by how much will the optimal revenue change?
(f) If C-town brewery has 120 additional pounds of hops, by how much will the optimal revenue
increase?
(g) If the unit revenue for Expansion Draft is increased by $5, how much will the optimal revenue
increase?

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