Question: Using Sensitivity Information Correctly 3 6 . B verly Anin Cosmetics has created two new perfumes: Summer Passion and Ocean Breeze. It costs $ 5
Using Sensitivity Information Correctly
Bverly Anin Cosmetics has created two new perfumes: Summer Passion and Ocean Breeze. It costs $ to purchase the fragrance needed for each bottle of Summer Passion and $ for each bottle of Ocean Breeze. The marketing department has stated that at least but no more than of the product mix be Summer Passion; the forecasted monthly demand is bottles and is estimated to increase by eight bottles for each $ spent on advertising. For Ocean Breeze, the demand is forecast to be bottles and is expected to increase by bottles for
each $ spent on advertising. Summer Passion sells for $ per bottle and Ocean Breeze for $ per bottle. A monthly budget of $ is available for both advertising and purchase of the fragrances.
a Develop and solve a linear optimization model to determine how much of each type of perfume should be produced to maximize the net profit.
b In viewing the Solver Sensitivity Report, explain what information is accurate and what information is misleading because it violates the assumptions of sensitivity analysis.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
