Computer Warehouse assembles and tests personal computers for sale in its retail stores. It produces two...

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Computer Warehouse assembles and tests personal computers for sale in its retail stores. It produces two computer models: Basic and XP. Each model requires assembly time and testing time, both of which are limited resources. Due to prior contractual arrangements, the company can produce no more than 1000 Basic computers and no more than 1000 XP computers in a given month. A linear optimization model has been formulated to solve the problem of how many Basic computers (defined as x1) and how many XP computers (defined as x2) to produce in the next month so as to obtain the largest possible profit. The printout below shows the optimal solution and sensitivity reports for this problem obtained from Excel/Solver. Microsoft Excel Answer Report Objective Cell (Max) Cell Name Original Value Final Value $D$12 Profit Total 0 618500 Variable Cells Cell Name Original Value Final Value Integer $B$10 $C$10 Value x1 Value x2 0 1000 Contin 0 750 Contin Constraints Cell Name Cell Value $D$15 Assembly time Used $D$16 Testing time Used $D$17 Max production - Basic Used $D$18 Max production - XP Used Formula 7750 $D$15 Note: Consider the changes indicated in parts b, c, d, and e independently. b. Suppose that it is possible to increase the amount of testing time available by 100 hours. By how much would this increase the total profit? Explain/justify your response. [4 pts] C. Due to an equipment malfunction, the assembly time available has decreased by 40 hours. What is the impact on the optimal solution? Explain/justify your response. [4 pts] d. If the profit for an XP increases by $25 per unit, what will the optimal value of x and x2 be? What will the objective function value be? Explain/justify your response. [4 pts] e. The production manager has just learned that the maximum production of Basic computers has been reduced from 1000 to 600. What is the effect of this change? What will the new optimal solution and objective function value be? Explain/justify your response. [4 pts] f. The Reduced Cost for Basic computers (x1) is 0 Briefly explain what this means and/or why this is true. [2 pts] Computer Warehouse assembles and tests personal computers for sale in its retail stores. It produces two computer models: Basic and XP. Each model requires assembly time and testing time, both of which are limited resources. Due to prior contractual arrangements, the company can produce no more than 1000 Basic computers and no more than 1000 XP computers in a given month. A linear optimization model has been formulated to solve the problem of how many Basic computers (defined as x1) and how many XP computers (defined as x2) to produce in the next month so as to obtain the largest possible profit. The printout below shows the optimal solution and sensitivity reports for this problem obtained from Excel/Solver. Microsoft Excel Answer Report Objective Cell (Max) Cell Name Original Value Final Value $D$12 Profit Total 0 618500 Variable Cells Cell Name Original Value Final Value Integer $B$10 $C$10 Value x1 Value x2 0 1000 Contin 0 750 Contin Constraints Cell Name Cell Value $D$15 Assembly time Used $D$16 Testing time Used $D$17 Max production - Basic Used $D$18 Max production - XP Used Formula 7750 $D$15 Note: Consider the changes indicated in parts b, c, d, and e independently. b. Suppose that it is possible to increase the amount of testing time available by 100 hours. By how much would this increase the total profit? Explain/justify your response. [4 pts] C. Due to an equipment malfunction, the assembly time available has decreased by 40 hours. What is the impact on the optimal solution? Explain/justify your response. [4 pts] d. If the profit for an XP increases by $25 per unit, what will the optimal value of x and x2 be? What will the objective function value be? Explain/justify your response. [4 pts] e. The production manager has just learned that the maximum production of Basic computers has been reduced from 1000 to 600. What is the effect of this change? What will the new optimal solution and objective function value be? Explain/justify your response. [4 pts] f. The Reduced Cost for Basic computers (x1) is 0 Briefly explain what this means and/or why this is true. [2 pts]