Conduct sensitivity analysis, answering each of the following questions. Treat each question independently from the others (i.e., the questions are not cumulative in nature). The responses should be typed below or beside the sensitivity report output.

i)Currently Fonti does not make aline springs even though they believe there is a demand for them. What profit would an aline spring need to be to make it worthwhile to make them in the optimal solution? Show formula and values for calculation. What price would they need to charge to get this profit?

ii)Fonti is thinking of charging $137.50 for a Chora spring. Will this change the product mix? Show your reasoning; since you are comparing values, explicitly state the two values with your analysis and then your conclusion.

iii)Due to the increase in demand worldwide for the special attachments for belli springs, the cost for belli springs will increase by $2.50 per spring. Will this change the product mix? Show your reasoning; since you are comparing values, explicitly state the two values with your analysis and then your conclusion.

For the following questions, indicate if the constraints are binding or not and, if applicable, if the change is within the allowable increase or decrease (compare to the actual values), and then calculate the change in the profit (show calculation).

iv)Fonti has noticed that customers are buying less of the Delta springs; they believe the new maximum demand will be 32 springs. How would this impact the profit? Show your reasoning.

v)Fonti has heard of an opportunity to get pursue more demand for the Chora springs. Should they pursue this? Show your reasoning.

vi)Fonti is considering asking a worker to stay an extra 15 minutes even though they would need to pay him overtime at 1.5 X his $40 hourly rate. This is an all or none deal. Should they consider this? What the impact on the profit if they did this? Since you are comparing values, explicitly state the values with your analysis/calculations and then your conclusions.

DATA Aline $176.00 Belli $189.00 Chora $132.50 Delta $118.00 Sales Price per Spring Cost per Spring Total Contribution to Profit per Box $113.87 $62.13 $115.75 $73.25 $78.25 $54.25 $68.36 $49.64 16 18 14 10 Labour (minutes) Machine and Testing (minutes) 00 8 6 4 3 NET DECISION Number of Springs to Make Aline 0.0 Belli 21.0 Chora 33.0 Delta 36.0 PROFIT $5,115.54 = 33.0 = 33.0