This quesition requires an excel model fairly simple mostly data entry but USALT format of decision variables and a few follow up questions... see below:

Red River Hot tubs manufactures and sells two models of hot tubs: the Aqua spa and the Hydro lux, the owner, Chris Jones, needs to decide how many of each type of hot tub to produce during his next production cycle.

175 pumps available during his next prod. cycle/

difference in labor---

Aqua-spa requires 9 hours labor and 12 feet tubing

Hydro-Lux requires 6 hours labor and 16 feet tubing

Expects 1,566 production labor hours and 2,880 feet of tubing available during next production cycle. Minimimum level of production for Hydro Lux = 30 tubs

Chris earns a $200 profit on each hydro lux he sells and a $250 on each Aqua-spa he sells.

How many Aqua-spas and how many Hydro-luxes should Chris produce if he wants to maximize his profit during the next production cycle?

1.) In Excel, define decision variables in USALT format

2.) Write mathematical formulation for the problem using DV's defined

3.) Solve the model with Excel and create sensitivity report

4.) What is the optimal solution in lay terms?

5.) What is the value of objective function at its best according to your solution?

6.) Use sensitivity report: will the optimal solution point change if the profit contribution coefficient for Aqua spa increases by $25?

7.) Which constraints are binding? Is there any slack of surplus for each constraint?