Question: [ You DO NOT need to use Excel solver for this question ] The Candid Camera Company formulates the following linear program to determine the
You DO NOT need to use Excel solver for this question The Candid Camera Company formulates the following linear program to determine the optimal number of cameras of each type to produce in order to maximize its profit. The contribution margins for Cub, Quikiematic, and VIP are $ $ and $ respectively. Decision Variables C: # of Cub cameras produced Q: # of Quikiematic cameras produced V: # of VIP cameras produced Linear Programming Formulation Maximize C QV $ profits Subject to constraints:
C QVmanufacturing time; C QVassembly time; C QVtest & package time; C Demand for Cub; Q Demand for Quickiematic; VDemand for VIP ; C Q V
The Sensitivity Analysis report obtained by running this program in Solver is shown below. Some cells in the Solver report have been shaded in but you DO NOT need to worry about it for this problem. Using this partial report, answer the questions that follow.a Given this solution, what is the optimal profit that Candid Camera will make? A $ B $ C $ D $ E None of the above b Interpret the negative shadow price for the demand constraint for Quickiematic cameras. A The shadow price cannot be interpreted correctly because there is an error in this linear program. B The company should produce more Quickiematic cameras. C The company should produce fewer Quickiematic cameras to increase its profit. D The company should produce more Quickiematic cameras to increase its profit. E None of the above. c The availability of manufacturing time decreases from hours to hours due to one worker falling sick. Identify the effect of this change on the optimal solution. Hint: see the manufacturing time constraint A The optimal solution changes. B Effect cannot be determined. C The optimal solution does not change.
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