Consider Figure 4.11, which shows the sensitivity report for the Flair Furniture example in Section 4.3. For
Question:
Consider Figure 4.11, which shows the sensitivity report for the Flair Furniture example in Section 4.3. For each of the situations described below, check to see if the 100% rule can be used to determine the impact of the simultaneous changes described. If so, compute the total change in profit. Each question is independent of the other questions.
Figure 4.11
(a) Carpentry hours increase by 50, and painting hours increase by 400.
(b) The maximum tables decrease by 70, and painting hours increase by 100.
(c) The maximum chairs decrease by 100, and the maximum tables increase by 100.
(d) Carpentry hours decrease by 100, and painting hours decrease by 300.
(e) The profit contribution of chairs increases by $2.00 per unit, and maximum chairs allowed increases by 30.
(f) The profit contribution of chairs decreases by $1.00 per unit, and the profit contribution of tables increases by $2.00 per unit.
Step by Step Answer:
Managerial Decision Modeling Business Analytics With Spreadsheet
ISBN: 9781501515101
4th Edition
Authors: Nagraj Balakrishnan, Barry Render, Ralph Stair, Charles Munson