Question
1. Patricia loves building small house-like structures, including birdhouses, doghouses, and outhouses, and has recently begun promoting her creations online. Even with the help her
1. Patricia loves building small house-like structures, including birdhouses, doghouses, and outhouses, and has recently begun promoting her creations online. Even with the help her grand kids, she only has so many hours available for fabrication, assembly, painting, and crating her creations each week. In order to better understand how to maximize her profits, Patricia created a model of her business in Excel and found the following results.
A. For the given production levels, what is her maximum profit? (Round answer to two decimal places. Do not use $.)
B.What is the maximum amount Patricia could earn in profits from each outhouse before it would change her optimal solution?
C. In the current model, which type of house should Patricia not be producing? Support your answer with numbers from the sensitivity report.
D. Patricia had to adjust her model this week because she had 2 less hours to dedicate to painting her houses. By how much will that decrease her profits for the week? (If needed, round your answer to two decimal places. Do not use $.)
E.To which step in the production process (fabrication, assembly, painting, and crating) should Patricia give additional hours if she can only add them to one? Support your answer with values from the sensitivity report.
Please Explain All Parts of the answer and any necessary steps taken to reach answer so that I may understand the process with you. Thank you so much!!!
The Sensitivity Report: Variable Cells Cell Name $C$4 Birdhouse $D$4 Doghouse $E$4 Outhouse Final Value 0.00 15.38 6.15 Reduced Cost -17.15 0.00 0.00 Objective Coefficient 15.00 35.00 58.00 Allowable Increase 17.15 6.43 82.00 Allowable Decrease 1E+30 20.50 9.00 Constraints Cell Name $F$5 Fabricate $F$6 Assemble $F$7 Paint $F$8 Crate Final Value 30.00 47.69 20.00 12.31 Shadow Price 25.23 0.00 6.92 Constraint Allowable R.H. Side Increase 3.75 1E+30 20 1.58 20 1E+30 30 50 Allowable Decrease 12.50 2.31 8.00 7.69 0.00 The Sensitivity Report: Variable Cells Cell Name $C$4 Birdhouse $D$4 Doghouse $E$4 Outhouse Final Value 0.00 15.38 6.15 Reduced Cost -17.15 0.00 0.00 Objective Coefficient 15.00 35.00 58.00 Allowable Increase 17.15 6.43 82.00 Allowable Decrease 1E+30 20.50 9.00 Constraints Cell Name $F$5 Fabricate $F$6 Assemble $F$7 Paint $F$8 Crate Final Value 30.00 47.69 20.00 12.31 Shadow Price 25.23 0.00 6.92 Constraint Allowable R.H. Side Increase 3.75 1E+30 20 1.58 20 1E+30 30 50 Allowable Decrease 12.50 2.31 8.00 7.69 0.00Step by Step Solution
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