Question
5. Suppose the market of these fruits has been interrupted. As the result, Annonas revenue becomes zero. Will the optimal dealing levels of each type
5. Suppose the market of these fruits has been interrupted. As the result, Annonas revenue becomes zero. Will the optimal dealing levels of each type of fruit change? Why or why not? Now, consider another case. If the price of Baobab has gone up by 1000%, will the optimal levels change? Why or why not?
6. The companys CEO says, based on these reports, ExFruits total revenue would have been more than $100 more if we could relax the carbon emission limit by 100 units; and if we could relax it by 200 units, then our total revenue would have been at least $200 more. Comment on the statement on whether its true or false, and why.
7. After reviewing these reports, the companys Cashier says, well, I know if we have more cash available for storage cost, our revenue will not increase. Comment on the Cashers statement in a similar way as above.
8. The companys Inventory Officer says, again based on these reports, that ExFruits revenue would have been reduced by more than $100 if we reduce the requirement for fiber by 100g. Similar to the previous question, comment on this statement.
Problem #2 ( 70 points) Sensitivity Report ExFruit is an exotic fruit dealer, managing four types of fruits: Annona, Baobab, Carob, and Variahle C.ells Damson. The revenue for each pound of these four types of fruits is: $6,$12,$5, and $2 respectively. ExFruit is conscious of the environment and wants to limit its carbon emission within 1100 units per day. Furthermore, ExFruit has $800 and $400 available per day to cover the cost of storage and shipping of the four types of fruits. The carbon emission, storage cost, and shipping cost associated with each pound of each type of fruit is summarized below: Annona and Baobab are rich in healthy fat. Each pound of these two types of fruits provides 20g and 30g of healthy fat, respectively. Carbo and Damson are rich in fiber. Each pound of these two types of fruits provides 4g and 6g of fiber, respectively. Customers of ExFruit demands the company to ensure that the fruits it deals provide at least 150g of healthy fat and 600g of fiber per day. Suppose this LP problem has been solved and the answer report and sensitivity report are given below. Answer the questions following these reports. Answer Report Ohiective C.ell (Max) V/ariahle relleStep by Step Solution
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