Question: Problem Narrative Shells Unlimited processes and packs five products in individual bags to sell in retail stores. The COGS (Cost of goods sold) and retail

 Problem Narrative Shells Unlimited processes and packs five products in individual
bags to sell in retail stores. The COGS (Cost of goods sold)

Problem Narrative Shells Unlimited processes and packs five products in individual bags to sell in retail stores. The COGS (Cost of goods sold) and retail prices associated with each product are presented in the table below: The company has 10,000lbs. of almonds and 18,000 lbs. of pistachios available for processing from this year's harvest. The pounds of almonds and pistachios used per unit as well as labor requirements per unit are summarized in the table below. Currently, the company has 1,200 hours of labor available. Shells Unlimited supplies 500 units of Chili pistachios and 400 units of Regular pistachios to its largest customer. The company would like to ensure sufficient product to satisfy this demand. Questions You are given the solution to the problem and the sensitivity report above. Please respond the following questions using the information provided. Explain your answer and show your calculations legibly and neatly to receive full credit. 1) If the profit margin for each bag of Raw Almonds increased from $0.70 to $1.00 : i) Is it optimal to pack more Raw Almonds? ii) How would this change in the profit per unit affect the optimal solution and objective function value? Explain your answer and show your calculations for the change in profit and the new profit level, if applicable. 2) If the profit margin for each bag of Shelled Pistachios decreased from $1.50 to $1.20 : i) Is it optimal to pack fewer bags of Shelled Pistachios? ii) How would this change in the profit per unit affect the optimal solution and objective function value? Show your calculations for the change in profit and the new profit level, if applicable. Problem Narrative Shells Unlimited processes and packs five products in individual bags to sell in retail stores. The COGS (Cost of goods sold) and retail prices associated with each product are presented in the table below: The company has 10,000lbs. of almonds and 18,000 lbs. of pistachios available for processing from this year's harvest. The pounds of almonds and pistachios used per unit as well as labor requirements per unit are summarized in the table below. Currently, the company has 1,200 hours of labor available. Shells Unlimited supplies 500 units of Chili pistachios and 400 units of Regular pistachios to its largest customer. The company would like to ensure sufficient product to satisfy this demand. Questions You are given the solution to the problem and the sensitivity report above. Please respond the following questions using the information provided. Explain your answer and show your calculations legibly and neatly to receive full credit. 1) If the profit margin for each bag of Raw Almonds increased from $0.70 to $1.00 : i) Is it optimal to pack more Raw Almonds? ii) How would this change in the profit per unit affect the optimal solution and objective function value? Explain your answer and show your calculations for the change in profit and the new profit level, if applicable. 2) If the profit margin for each bag of Shelled Pistachios decreased from $1.50 to $1.20 : i) Is it optimal to pack fewer bags of Shelled Pistachios? ii) How would this change in the profit per unit affect the optimal solution and objective function value? Show your calculations for the change in profit and the new profit level, if applicable

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