Taco Loco is considering a new addition to their menu. They have test marketed a number...

 

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Taco Loco is considering a new addition to their menu. They have test marketed a number of possibilities and narrowed them down to three new products, X, Y, and Z. Each of these products is made from a different combination of beef, beans, and cheese, and each product has a price point. Taco Loco feels they can sell an X for $17, a Y for $13, and a Z for $14. The company's management science consultant formulates the following linear programming model for company management. Revenue = 14Z+13Y+ 17X Maximize subject to: 2Z + 3Y + 4X ≤28 9Z+SY+ 11X ≤ 80 4Z+4Y + 2X ≤ 68 X.Y.Z 20 The sensitivity report from the computer model reads as follows: Variable Cells Cell Name SC$4 Z SD$4 Y SES4 X Beef Cheese Beans Constraints Cell SFS6 Beef SFS7 $F$8 Name Answers: Cheese Beans Final Value 1.45 8.36 0 Final Value 28 80 39.27 Reduced Cost 0 0 -0.818 Shadow Price 0.45 1.45 0 Objective Allowable Coefficient Increase 0.63 8 0.818 14 13 17 Constraint Allowable R.H. Side Increase 28 80 68 The optimal quantity of the three products and resulting revenue for Taco Loco is: A 1.45 Z, 8.36 Y, and 0 Z for $129.09 B. 14 Z, 13 Y, and 17 X for $9.81 c. 10.22 beef, 5.33 cheese, and 28.73 beans for $147.27 D. 28 beef, 80 cheese, and 39.27 beans for $147.27 2 46 1E+30 Allowable Decrease 5.33 0.56 1E+30 Allowable Decrease 10.22 5.33 28.73 Taco Loco is considering a new addition to their menu. They have test marketed a number of possibilities and narrowed them down to three new products, X, Y, and Z. Each of these products is made from a different combination of beef, beans, and cheese, and each product has a price point. Taco Loco feels they can sell an X for $17, a Y for $13, and a Z for $14. The company's management science consultant formulates the following linear programming model for company management. Revenue = 14Z+13Y+ 17X Maximize subject to: 2Z + 3Y + 4X ≤28 9Z+SY+ 11X ≤ 80 4Z+4Y + 2X ≤ 68 X.Y.Z 20 The sensitivity report from the computer model reads as follows: Variable Cells Cell Name SC$4 Z SD$4 Y SES4 X Beef Cheese Beans Constraints Cell SFS6 Beef SFS7 $F$8 Name Answers: Cheese Beans Final Value 1.45 8.36 0 Final Value 28 80 39.27 Reduced Cost 0 0 -0.818 Shadow Price 0.45 1.45 0 Objective Allowable Coefficient Increase 0.63 8 0.818 14 13 17 Constraint Allowable R.H. Side Increase 28 80 68 The optimal quantity of the three products and resulting revenue for Taco Loco is: A 1.45 Z, 8.36 Y, and 0 Z for $129.09 B. 14 Z, 13 Y, and 17 X for $9.81 c. 10.22 beef, 5.33 cheese, and 28.73 beans for $147.27 D. 28 beef, 80 cheese, and 39.27 beans for $147.27 2 46 1E+30 Allowable Decrease 5.33 0.56 1E+30 Allowable Decrease 10.22 5.33 28.73

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