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
36. Bverly Anin Cosmetics has created two new perfumes: Summer Passion and Ocean Breeze. It costs $5.25 to purchase the fragrance needed for each bottle of Summer Passion and $4.70 for each bottle of Ocean Breeze. The marketing department has stated that at least 30% but no more than 70% of the product mix be Summer Passion; the forecasted monthly demand is 7,000 bottles and is estimated to increase by eight bottles for each $1 spent on advertising. For Ocean Breeze, the demand is forecast to be 12,000 bottles and is expected to increase by 15 bottles for
each $1 spent on advertising. Summer Passion sells for $42.00 per bottle and Ocean Breeze for $30.00 per bottle. A monthly budget of $100,000 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.
 Using Sensitivity Information Correctly 36. Bverly Anin Cosmetics has created two

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