Question: zero, enter 0 . Discuss your findings. As the % change in selling price increases, the optimal mixIn PC Tech s product mix

zero, enter "0".
Discuss your findings.
As the % change in selling price increases, the optimal mixIn PC Techs product mix problem, assume there is another PC model, the VXP, that the company can produce in addition to Basics and XPs. Each VXP requires eight hours for assembling, three hours for testing, $275 for component parts, and sells for $560. At most 50 VXPs can be sold. Perform a sensitivity analysis where the selling prices of Basics and XPs simultaneously change by the same percentage, but the selling price of VXPs remains at its original value. Let the percentage change vary from -25% to 10% in increments of 5%, and keep track of the values in the decision variable cells and the total profit. Round your answers to nearest whole number. If your answer is zero, enter "0".
% change in selling prices Basic XP VXP Total profit
-25%
200
150
50
$
119250
-20%
200
150
50
$
127500
-15%
200
150
50
$
135750
-10%
200
150
50
$
144000
-5%
200
150
50
$
152250
0%
200
150
50
$
160500
5%
200
150
50
$
168750
10%
200
150
50
$
177000
Discuss your findings.
As the % change in selling price increases, the optimal mix
changes
with
an unpredictable
pattern, but the optimal profit always
decreases
.
 zero, enter "0". Discuss your findings. As the % change in

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!