Question: Reference the following sensitivity report to answer the questions: Variable Cells Final Value Reduced Cost -230 Objective Coefficient 240 Cell $B$5 $C$5 $D$5 0 Name

Reference the following sensitivity report toReference the following sensitivity report to

Reference the following sensitivity report to answer the questions: Variable Cells Final Value Reduced Cost -230 Objective Coefficient 240 Cell $B$5 $C$5 $D$5 0 Name Number to Make Chair Number to Make Table Number to Make Armoire Allowable Allowable Increase Decrease 230 1E+30 180 120 10 0 720 15 0 600 120 120 Constraints Final Value 3600 Cell Name $E$9 Assembly Minutes Used $E$10 Finishing Minutes Used $E$11 Wood Pounds Used Shadow Price 20 4.5 Constraint Allowable Allowable R.H. Side Increase Decrease 3600 400 600 2000 400 400 4000 1E+30 400 2000 3600 0 1) What is the optimal solution? 2) Suppose the profit per table changed to $950. Will the optimal solution change, and what can be said about the effect on total profit? 3) Suppose the profit per table changed to $800. Will the optimal solution change, and what can be said about the effect on total profit? 4) Suppose there are 300 less minutes available for Assembly. What can be said about the effect on total profit? 5) Suppose the company had an opportunity to acquire 500 minutes of Finishing capacity for a total cost of $2300. Should they do so? Explain

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!