Please notice that all work must be shown in a professional way with attention to detail No credit will be given for incomplete or disorderly work Please use a cover letter stating your name, course number, date due, and homework number Unstopled homework will not be collected as this is part of the assignment All work must be individual with emphasis on numerical accuracy Lote homework will incur into a 25% late penalty -- after it is officially collected at the beginning of class 1. Problem One: SmartTek is an electronics company that produces two lines of high capacity flash drives, model J, and model Z. Based on preliminary studies and research, the company expects the demand for model to be at least 1,000 units per day. In contrast, the demand for model Z is expected to be at least 3,900 units per day. Due to limitations in their manufacturing facility, the company cannot exceed 5,250 units for model, and 6,785 for model Z respectively. Given their good product designs, the company has a contractual obligation to send at least 6,150 units every day. If the sale of each lot of model J yields a $5,150 profit, and the sale of each lot of model z results in a $6,210 profit, (a) how many units of each model should SmartTek produce to maximize daily profits? (b) Create a Sensitivity Report and state, both the Reduced cost, and the Shadow Price, (c) interpret the significance of both, Reduced Cost and the Shadow Price, (d) suppose the company cannot exceed 4,851 units for model J, how does that impact your profit? 2. Problem Two: Chelsea Furniture produces three lines of office chairs for corporate clients, model A, model B and model C. Given demand studies, the company expects the demand for model A to be at least 400 units per day. In contrast, the demand for model B is expected to be at least 250 units per day. The demand for model is expected to be at least 175 units per day. Due to limitations in their manufacturing facility, the company cannot exceed 750 units for model A, 475 units for model B, and 315 units for model C. Based on pre-existing contracts, the company has a contractual obligation to send at least 1,135 units every day. In addition, to prevent brand dilution, the marketing department asks to produce at most 1,400 units in total. If the sale of each model A yields a $125 profit, the sale of each model B results in a $88 profit, and each sold model C unit contributes $78 in profits, (a) how many units of each model should the company produce to maximize daily profits? (b) Create a Sensitivity Report and state, both the Reduced Cost, and the Shadow Price, (c) interpret the significance of both, Reduced Cost and the Shadow Price, (d) suppose the company cannot exceed 751 units for model A, how does that impact your optimal profit? (e) Suppose the marketing department decides to produce at most 1401 total units, how does that impact your optimal profit in your original model? Please notice that all work must be shown in a professional way with attention to detail No credit will be given for incomplete or disorderly work Please use a cover letter stating your name, course number, date due, and homework number Unstopled homework will not be collected as this is part of the assignment All work must be individual with emphasis on numerical accuracy Lote homework will incur into a 25% late penalty -- after it is officially collected at the beginning of class 1. Problem One: SmartTek is an electronics company that produces two lines of high capacity flash drives, model J, and model Z. Based on preliminary studies and research, the company expects the demand for model to be at least 1,000 units per day. In contrast, the demand for model Z is expected to be at least 3,900 units per day. Due to limitations in their manufacturing facility, the company cannot exceed 5,250 units for model, and 6,785 for model Z respectively. Given their good product designs, the company has a contractual obligation to send at least 6,150 units every day. If the sale of each lot of model J yields a $5,150 profit, and the sale of each lot of model z results in a $6,210 profit, (a) how many units of each model should SmartTek produce to maximize daily profits? (b) Create a Sensitivity Report and state, both the Reduced cost, and the Shadow Price, (c) interpret the significance of both, Reduced Cost and the Shadow Price, (d) suppose the company cannot exceed 4,851 units for model J, how does that impact your profit? 2. Problem Two: Chelsea Furniture produces three lines of office chairs for corporate clients, model A, model B and model C. Given demand studies, the company expects the demand for model A to be at least 400 units per day. In contrast, the demand for model B is expected to be at least 250 units per day. The demand for model is expected to be at least 175 units per day. Due to limitations in their manufacturing facility, the company cannot exceed 750 units for model A, 475 units for model B, and 315 units for model C. Based on pre-existing contracts, the company has a contractual obligation to send at least 1,135 units every day. In addition, to prevent brand dilution, the marketing department asks to produce at most 1,400 units in total. If the sale of each model A yields a $125 profit, the sale of each model B results in a $88 profit, and each sold model C unit contributes $78 in profits, (a) how many units of each model should the company produce to maximize daily profits? (b) Create a Sensitivity Report and state, both the Reduced Cost, and the Shadow Price, (c) interpret the significance of both, Reduced Cost and the Shadow Price, (d) suppose the company cannot exceed 751 units for model A, how does that impact your optimal profit? (e) Suppose the marketing department decides to produce at most 1401 total units, how does that impact your optimal profit in your original model