Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. Best Wishes Company is a mail order company that delivers gift baskets for businesses and individuals. They currently offer four different kinds of

image text in transcribedimage text in transcribed

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 Name $B$14 Four Cheese Value 150 Final Reduced Objective Allowable Allowable Cost Coefficient Increase Dec 0 6.99 0.9015 0.4975 SC$14 Cheddars 12.5 0 7.99 1.99 386066666 $D$14 Party Box 01.073214286 5.99 1.073214286 1E+30 SES14 Nachose Blend 25 D 8.99 0.995 0.819545455 Constraints Final Shadow Call Name Value Price Constraint R.H. Side Allowable Increase Allowable SF518 Mild Cheddar 500 5F519 Sharp Cheddar 300 SF520 Swiss 0.4925 450 50 400 70 23.33333333 SF521 Monterrey Jacki 500 0.643928571 70 31.81818182 15755 212.5 450 400 2.068214286 (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? (e) What are the non-binding constraints and how much slack is there in each? (f) How much more would Best Wishes earn if they had 60 additional ounces of Mild Cheddar?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting & Analysis Using Financial Accounting Information

Authors: Charles H. Gibson

11th edition

324657420, 978-0324657425

More Books

Students also viewed these Accounting questions

Question

Find any horizontal or vertical asymptotes. f(x) = = X 1- X

Answered: 1 week ago

Question

What is for a particle with? (a) K = 2.00E0 and (b) E = 2.00E0?

Answered: 1 week ago

Question

What do they think of the project?

Answered: 1 week ago

Question

What state do you want to have reached at the end of the project?

Answered: 1 week ago