Problem $12-40($Algo$)$

Demand for rug$-$cleaning machines at Clyde's U$-$Rent$-$It is shown in the following table. Machines are rented by the day only. Profit on

the rug cleaners is $$17$ per day. Clyde has $3$ of the rug$-$cleaning machines.

Click here for the Excel Data File

a$.$ Assuming that Clyde's stocking decision is optimal, what is the implied range of excess cost per machine? $($Enter smaller value in

first box and larger value in second box. Do not round intermediate calculations. Round your answers to $2$ decimal places.$)$

b$.$ Your answer from part a has been presented to Clyde, who protests that the amount is too low. Does this suggest an increase or a

decrease in the number of rug machines he stocks?

Increase

Decrease

c$.$ Suppose now that the $$17$ mentioned as profit is instead the excess cost per day for each machine and that the shortage cost is

unknown. Assuming that the optimal number of machines is $3,$ what is the implied range of shortage cost per machine? $($Enter smaller

value in first box and larger value in second box. Do not round intermediate calculations. Round your answers to $2$ decimal

places.$)$