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A 1 Assembling and testing computers 2 3 Cost per labor hour assembling 4 Cost per labor hour testing 5 6 Inputs for assembling

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A 1 Assembling and testing computers 2 3 Cost per labor hour assembling 4 Cost per labor hour testing 5 6 Inputs for assembling and testing a computer 7 8 Labor hours for assembly 9 Labor hours for testing 10 Cost of component parts 11 Selling price 12 Unit margin 13 14 Assembling, testing plan (# of computers) 15 16 Number to produce 17 18 Maximum sales B C D E Range names used: F G $11 $15 Hours_available Hours_used =Model!$D$21:$D$2 =Model!$B$21:$B$22 Maximum_sales =Model!$B$18:$C$18 Number_to_produce Total_profit =Model!$B$16:$C$16 =Model!$D$25 Basic 5 6 1 2 $150 $225 $300 $450 $80 $129 Basic XP 560 1200 A B D E F H 1 Variable Cells 2 3 Cell Name Value Final Reduced Objective Cost Coefficient Allowable Allowable Increase Decrease 4 $B$16 Number to produce Basic 560 0 80 5 $C$16 Number to produce XP 1200 33 129 27.5 1E+030 80 33 6 7 Constraints 8 Final Shadow Constraint Allowable Allowable 9 Cell Name Value Price R.H. Side Increase Decrease 10 $B$21 Labor availability for assembling Used 10000 16 11 $B$22 Labor availability for testing Used 2960 0 10000 3000 200 2800 1E+030 40 Constraints Name Assembly time Used Testing time Used Cell $0$15 $D$16 SD$17 Max production-Basic Used SD$18 Max production - XP Used Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase 10000 16 10000 200 Decrease 2800 2960 3000 1E-30 40 560 1200 0 600 18-30 40 33 1200 50 33.333333 Use the information from these printouts to answer questions below. Be sure to explain/justify your answers to receive full credit. a. How many Basic and how many XP computers should be produced to maximize profit? What is the maximum profit? Explain/justify your response. [4 pts] 4 Note: Consider the changes indicated in parts b, c, d, and e independently. b. Suppose that it is possible to increase the amount of assembly time available by 100 hours. By how much would this increase the total profit? Explain/justify your response. [4 pts] C. Due to an equipment malfunction, the testing time available has decreased by 20 hours. What is the impact on the optimal solution? Explain/justify your response. [4 pts] d. If the profit for an XP increases by $6 per unit, what will the optimal value of x and x2 be? What will the objective function value be? Explain/justify your response. [4 pts] 4 e. The production manager has just learned that the maximum production of Basic computers has been reduced from 600 to 550. What is the effect of this change? What will the new optimal solution and objective function value be? Explain/justify your response. [4 pts] f. The Reduced Cost for Basic computers (x1) is 0 Briefly explain what this means and/or why this is true. [2 pts]

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