Q3. (35 pts) Linear Programming. Excel solver is recommended. But you are welcome to solve it by using the graph approach.

Sports Chalet is going to have a clearance sale at the beginning of the winter to sell merchandise from the year before to open up space for the newly arriving items. The manager decided to sell two products, InsulatedCoat and FuzzyBoot together with a single clearance price tag. But after the sale drive, remaining products will be sold separately with individual price tags. Because of that, separate prices must be determined for these products. The manager decides that 30% of the single clearance price tag should be based on the price of coat and 70% of the single clearanceprice tag should be based on the price of boots. The managers aim is to minimize the single clearance price tag.

There are several conditions that reflect how prices should be detemined:

• When the individual prices of the InsulatedCoat and FuzzyBoot are added, the total should be at least $450
• The price of the InsulatedCoat by itself can be at most $350
• The price of the FuzzyBoot by itself can be at most $250

1. 10 pts: Formulate the problem using a set of linear equations and define the decision variables, the objective function, the constraints and boundary conditions
2. 15 pts: Solve the problem using Excel solver, or the graph method. Attach solution evidence as a separate file if you use the Excel solver. In the template below, paste the answer report and the sensitivity report OR pictures of the graphs and the intersecting vertices along with the optimal solution vertex. Identify the solution results and the constraints that are binding, non-binding. Indicate the slack/surplus values if there are any.
3. 10 pts:Provide the following answers:

-How would the single pricetag change if the manager decides that 70% of the price tag should be based on the price of coat and 30% of the price tag should be based on the price of boot?

-How would the solution be affected if the boundary condition for the individual price of the InsulatedCoat by itself is increased by 1?