Using only the sensitivity report given below, answer the following questions. Give as much information as possible
Question:
Using only the sensitivity report given below, answer the following questions. Give as much information as possible regarding changes to the objective function value and/or changes to the optimal variable values.
a) Suppose that the brand visibility index for direct marketing is questioned. What would happen if its index was actually 0.4?
b) Suppose that the brand visibility index for industry conferences is questioned. What would happen if its index was actually 0.7?
c) Suppose that the brand visibility index for the business finding group is questioned. What would happen if its index was actually 0.9?
d) Gianni is also interested to understand how things might change under two scenarios: i) if the budget turned out to be $15,000 larger than expected and ii) if the budget turned out to be $500,000 less than expected. What would happen if either of these scenarios occurred?
e) What would happen if the amount that can be spent on direct marketing increased to $300,000?
f) What would happen if the minimum television ad spending was decreased to 25,000?
g) What would happen if the maximum amount of industry conference spending were to increase to $150,000?
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer