Question: The below table provides the Answer and Sensitivity reports. Microsoft Excel 1 6 . 0 Answer Report Objective Cell ( Max ) Variable Cells Constraints
The below table provides the Answer and Sensitivity reports.
Microsoft Excel Answer Report
Objective Cell Max
Variable Cells
Constraints
Microsoft Excel Sensitivity Report
a How many units of each cosmetic type the company should produce to maximize
its profit? HINT: give the optimal solution
b Determine the objective value at the optimal solution. Provide the calculation.
c Identify which constraints are binding and explain why.
d The marketing department requires the production of lipsticks and
eyeshadows for a promotional campaign. Discuss how this requirement would affect the
optimal profit.
e Interpret the significance of a shadow price of $ associated with the production
quantity resource used as per the Sensitivity Report.
f If the factory manager plans to expand the warehouse in to accommodate a
storage space of units, predict the potential new profit value while showing a detailed
calculation.
g Considering an economic downturn that leads the management to reduce the
warehouse space by half, analyze how this decision might impact the profit value. Provide
a detailed calculation if necessary
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