QUESTION 8 Use this information, along with its associated Sensitivity Report, to answer the following questions. A production manager wants to determine how many units of each product to produce weekly to maximize weekly profits. Production requirements for the products are shown in the following table. Product A B C Formulation Max Subject to: 20. Material 1 (lbs.) 3 1 5 Material 2 (lbs.) 2 4 none Material 1 costs $7 a pound, material 2 costs $5 a pound, and labor costs $15 per hour. Product A sells for $101 a unit, product B sells for $67 a unit, and product C sells for $97.50 a unit. Each week there are 300 pounds of material 1; 400 pounds of material 2; and 200 hours of labor. The output of product A should not be more than one-half of the total number of units produced. Moreover, there is a standing order of 10 units of product C each week. $1E+30 $132.5 $10 * Labor (hours) 4 2 3.5 10A + 10B + 10C 3A + B + 5C 300 (constraint #1) 2A + 4B 400 (constraint #2) By how much would the profit contribution of product A has to increase before it will be profitable to produce A? $20 $0 4A + 2B + 3.5C 200 (constraint #3) C 10 (constraint #4)

Use this information, along with its assoclated Senslivity Report, to answer the following questions. A production manager wants to determine how many units of each product to produce weekly to maximize weekly profits. Production requirements for the products are shown in the following table. Material 1 costs $7 a pound, material 2 costs $5 a pound, and labor costs $15 per hour. Product A sells for $101 a unit, product B sells for $67 a unit, and product C sells for $97.50 a unit. Each week there are 300 pounds of material 1:400 pounds. of material 2; and 200 hours of labor. The output of product A should not be more than one-half of the total number of units produced. Moreover, there is a standing order of 10 units of product C each week. Eormulation MaxSubjectto:10A+10B+10C3A+B+5C300(constraint#1)2A+4B400(constraint#2)4A+2B+3.5C200(constraint#3)C10(constraint#4) By how much would the profit contribution of product A has to increase before it will be profitable to produce A? $20$0$1E+30$132.5$10