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4. Best Wishes Company is a mail order company that delivers gift baskets for businesses and individuals. They currently offer four different kinds of
4. Best Wishes Company is a mail order company that delivers gift baskets for businesses and individuals. They currently offer four different kinds of gourmet cheese gift baskets: "Four-Cheese," "Cheddars," "Party Box," and "Nachos Blend." Each of these different gift baskets comprises a different combination of four cheeses: Mild Cheddar, Sharp Cheddar, Swiss, and Monterey Jack. A fixed number of ounces of each of these cheeses are available to make up the baskets. The company has used a linear optimization model to determine how many baskets of each type to produce in order to maximize total profit. The model was solved using Excel and the Sensitivity Report is shown below. Answer the following questions using the sensitivity report. (If a question can't be answered using the sensitivity report say so. You don't need to change the model and solve it.) Variable Cells Cell Final Reduced Objective Allowable Allowable Name Value Cost Coefficient Increase Decrease $B$14 Four Cheese 150 0 6.99 0.9015 0.4975 $C$14 Cheddars 12.5 0 7.99 1.99 3.860666667 $D$14 Party Box 0 -1.073214286 5.99 1.073214286 1E+30 SES14 Nachose Blend 25 8.99 0.995 0.819545455 Constraints Cell Name Final Value $F$18 Mild Cheddar Shadow Price 500 0.643928571 Constraint Allowable Allowable R.H. Side Increase Decrease 500 70 31.81818182 $F$19 Sharp Cheddar 212.5 0 300 16.30 87.5 $F$20 Swiss $F$21 Monterrey Jack 450 400 2.068214286 0.4975 450 50 150 400 70 23.33333333 (a) What is the optimal amount to produce of each basket? (b) What will Best Wishes' profit be? (c) If Party Box baskets earned $7.99 instead of $5.99, what would the resulting profit be? (d) If Party Box baskets earned $4.99 instead of $5.99, what would the resulting profit be?
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