Question
Assume the following is the sensitivity analysis report for the Stone Age Surfboards manufacturing problem. The analysis report you developed to answer the previous questions
Assume the following is the sensitivity analysis report for the Stone Age Surfboards manufacturing problem. The analysis report you developed to answer the previous questions could be different from this one. DON'T USE THE SENSITIVITY REPORT YOU DEVELOPED TO ANSWER THIS QUESTION. Answer the following question based on the following sensitivity analysis report.
Variable Cells | ||||||
|
| Final | Reduced | Objective | Allowable | Allowable |
Cell | Name | Value | Cost | Coefficient | Increase | Decrease |
$B$4 | Units to Produce Graystone | 4 | 0 | 40 | 1E+30 | 5 |
$C$4 | Units to Produce Lava | 6 | 0 | 60 | 7 | 50 |
Constraints | ||||||
|
| Final | Shadow | Constraint | Allowable | Allowable |
Cell | Name | Value | Price | R.H. Side | Increase | Decrease |
$D$10 | Market mix LHS | 0 | 0 | 0 | 12 | 35 |
$D$8 | Fabrication LHS | 27 | 0 | 74 | 1E+30 | 25 |
$D$9 | Finishing LHS | 30 | 25 | 30 | 30 | 30 |
Suppose that the unit profit on Lava surfboards is increased by $5. What would be the impact of this change on profit?
- A.
Profit decreases by 30
- B.
Re-model and solve the model to understand the impact of the change
- C.
Profit remains the same
- D.
Profit increases by 30
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started