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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 perfumes: Summer Passion and Ocean Breeze. It costs
$ to purchase the fragrance needed for each bottle of Summer Passion and $ for each bottle of
Ocean Breeze. The marketing department has stated
that at least but no more than of the product mix be Summer Passion; the forecasted monthly
demand is bottles and is estimated to increase
by eight bottles for each $ spent on advertising. For
Ocean Breeze, the demand is forecast to be
bottles and is expected to increase by bottles for
each $ spent on advertising. Summer Passion sells
for $ per bottle and Ocean Breeze for $
per bottle. A monthly budget of $ 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 information is misleading because it violates the assumptions of sensitivity analysis.
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