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Beverly Ann Cosmetics has created two new per - fumes: Summer Passion and Ocean Breeze. It costs $ 5 . 2 5 to purchase the

Beverly Ann Cosmetics has created two new per-fumes: Summer Passion and Ocean Breeze. It costs
$5.25 to purchase the fragrance needed for each bot-tle of Summer Passion and $4.70 for each bottle of
Ocean Breeze. The marketing department has stated
that at least 30% but no more than 70% of the prod-uct mix be Summer Passion; the forecasted monthly
demand is 7,000 bottles and is estimated to increase
by eight bottles for each $1 spent on advertising. For
Ocean Breeze, the demand is forecast to be 12,000
bottles and is expected to increase by 15 bottles for
each $1 spent on advertising. Summer Passion sells
for $42.00 per bottle and Ocean Breeze for $30.00
per bottle. A monthly budget of $100,000 is available
for both advertising and purchase of the fragrances.
a. Develop and solve a linear optimization model
to determine how much of each type of perfume
should be produced to maximize the net profit.
b. In viewing the Solver Sensitivity Report, explain
what information is accurate and what informa-tion is misleading because it violates the assump-tions of sensitivity analysis.

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