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Assembling and testing computers Cost per labor hour assembling $11 Cost per labor hour testing, line 1 $19 Cost per labor hour testing, line 2

Assembling and testing computers Cost per labor hour assembling $11 Cost per labor hour testing, line 1 $19 Cost per labor hour testing, line 2 $17 Inputs for assembling and testing a computer Model 1 Model 2 Model 3 Model 4 Model 5 Model 6 Labor hours for assembly 4 5 5 5 5.5 5.5 Labor hours for testing, line 1 1.5 2 2 2 2.5 2.5 Labor hours for testing, line 2 2 2.5 2.5 2.5 3 3 Cost of component parts $150 $225 $225 $225 $250 $250 Selling price $350 $450 $460 $470 $500 $525 Unit margin, tested on line 1 Unit margin, tested on line 2 Assembling, testing plan (# of computers) Model 1 Model 2 Model 3 Model 4 Model 5 Model 6 Number tested on line 1 Number tested on line 2 Total computers produced Maximum sales Constraints (hours per month) Labor availability for assembling Labor availability for testing, line 1 Labor availability for testing, line 2 Net profit ($ per month) Tested on line 1 Tested on line 2 Hours used 1500 1250 1250 1250 1000 1000 Hours available 20000 5000 6000 Model 1 Model 2 Model 3 Model 4 Model 5 Model 6 Model 7 Model 8 5.5 6 2.5 3 3.5 3.5 $250 $300 $530 $600 Model 7 Model 8 1000 800 Model 7 Model 8 Totals In the product mix model it makes sense to change the maximum sales constraint to a "minimum sales" constraint, simply by changing the direction of the inequality. Then the input values in row 23 can be considered customer demands that must be met. Make this change and rerun Solver. What do you find? What do you find if you run Solver again, this time making the values in row 23 one-quarter of their current values? Change the maximum sales constraint to a minimum sales constraint and use Solver to find the optimal solution (5 points) Do not forget to provide your spreadsheet showing your results. What do you find? In particular, are all the constraints satisfied? (5 points)

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