Question $1,15\mathrm{.}1\mathrm{.}5$

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Part $2$ of $7$

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Crebo Manufacturing produces four types of structural support fittings$-$plugs, rails, rivets, and clips$-$which are machined on two CNC machining centers. To find an optimal solution to maximize the gross profit, the Excel add$-$in Solver was used. The accompanying figure shows the Solver Sensitivity Report. Using only the information in the Sensitivity Report, complete parts a through e$.$

$($i$)$ Click the icon to view the Solver Sensitivity Report.

a$.$ Explain the value of the reduced cost $(-0\mathrm{.}4)$ for the number of plugs to produce. Choose the correct answer below.

A$.$ The value $-0\mathrm{.}4$ indicates that if the gross margin of plugs goes down by $0\mathrm{.}4,$ the company might start making plugs.

B$.$ The value $-0\mathrm{.}4$ indicates that the gross margin of plugs would need to be $0\mathrm{.}4$ more than the gross margin for clips before the company might start making plugs.

C$.$ The value $-0\mathrm{.}4$ indicates that the gross margin of plugs would need to be $0\mathrm{.}4$ less than the gross margin for clips before the company might start making plugs.

D$.$ The value $-0\mathrm{.}4$ indicates that if the gross margin of plugs goes up by $0\mathrm{.}4,$ the company might start making plugs.

b$.$ If the gross margin for rails is decreased to $$1\mathrm{.}10,$ can you predict what the optimal solution and profit will be$?$ Select the correct choice and, if necessary, fill in the answer box$($es$)$ to complete your choice.

A$.$ The optimal solution would not change. The profit would not change.

B$.$ The optimal solution and profit might change, but their values cannot be determined.

C$.$ The optimal solution might change, but the values cannot be determined. The profit would change to $ $($Type integers or decimals rounded to two decimal places as needed.$)$

D$.$ The optimal solution would not change. The profit would change to $

$($Type integers or decimals rounded to two decimal places as needed.$)$

E$.$ The optimal solution would not change. The profit would change, but its value cannot be determined.

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