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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

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