Question
A small desktop computer producer has two models, basic and XP. You are given the contribution margin associated with each product. The producer simply buys
A small desktop computer producer has two models, basic and XP. You are given the contribution margin associated with each product. The producer simply buys the components, assembles them and finally tests them. Assembly hours and testing hours are the two limited resources. The Excel file you are given is set up so that you can find the optimal solution using the graphical method: a) What are the coordinates of the feasible region? Recall that A0 and B0 are constraints that we always assume (they are called the non-negativity constraints). When you identify the corners take those two constraints into account as well. b) At which corner does the optimal solution occur? c) What would be the minimum contribution margin required (ceteris paribus) so that the optimal number of basic models to be produced is larger than the quantity in the current optimal solution? Explain. Please do it by explaining on the excel below:
"XP" B "Basic" A 80 maximize Decision Variables A B 500 1200 Obj. Func. Value 194800 Obj coef 129 Obj type 6 5 1 500 9700Step by Step Solution
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