1. HotSprings Spas manufactures and sells two spa models: the Steamboat and the Classic. HotSprings Spas receives spa bodies from another manufacturer and then adds a pump and tubing to circulate the water. The Steamboat model demands 15.5 hours of labor and 14.5 feet of tubing. The Classic model requires 10.5 hours of labor and uses 20 feet of tubing. Based on selling patterns, the owner, Deborah Liebson, has determined that the Steamboat model generates a profit of $400 per unit, and each Classic model generates $345 profit. While Deborah would like a large labor capacity and sufficient tubing and motors to build any number of spas, her resources are limited. For the next production period, Deborah has 2,650 labor hours, 3,450 feet of tubing, and 231 pumps available. Deborah needs assistance in figuring out how many Steamboat and Classic models to build in order to maximize her profit. Given the constraints above, use Solver to assist Deborah in her what-if analysis. Deborah has provided you with a screen shot of a template you can use to get started:

1. Now Deborah has employed more workers, increasing the available production labor hours from 2,650 to 2800. What is HotSprings new Total Profit?

Steamboa Classic 2 aty 106.3391 95.40412 Labor 3 Profit 400 345 per unit Piping 4 Total Profit $42,536 $32,914 $75,450 Pumps 5 Labor 15.5 10.5 hours 20 feets 6 Piping 14.5 1 1 per unit 7 Pump 8 Total Hours 1648.257 1001.743 2650 9 Total Feets 1541.918 1908.082 3450 10 Total pump 106.3391 95.40412 201.7433 2650 hours 3450 feets 231 units Solver Parameters Set objective: SDS4 To: Max O Min O Value of By Changing Variable Cells: SBS2: SCS2 Subject to the Constraints: SDS10 SFS4 Add SDS8 SFS2 SDS9 SFS3 Change Delete Reset All Load/Save Make unconstrained variables Non-Negative Select a Solving Method: GRG Nonlinear Options Solving Method Select the GRG Nonlinear engine for Solver Problems that are smooth nonlinear. Select the LP Simplex engine for near Solver Problems, and select the Evolutionary engine for Solver problems that are non-smooth. Solve Help Close