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Consider a company that manufactures three home air conditioners: an economy model (E), a standard model (S), and a deluxe model(D). The objective is to

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Consider a company that manufactures three home air conditioners: an economy model (E), a standard model (S), and a deluxe model(D). The objective is to determine how many economic models, standard models, and deluxe models they should produce in order to maximize profit. Each model requires processing time (seconds) at three workstations detailed below. Product E Products Product D Process time at workstation 1 3 seconds 4 seconds 5 seconds Process time at workstation 2 5 seconds 3 seconds 4 seconds Process time at workstation 3 2 seconds 4 seconds 7 seconds Profit per unit $ 63.00 $ 95.00 $ 135.00 The goal of maximizing profit is analyzed over a one-hour period (3,600 seconds). Using Excel Solver, the following sensitivity report was generated Variable Cells Cell Namo $B$15 Product E $B$16 Products $B$17 Product D Final Reduced Objective Allowable Allowable Value Cost Coefficient increase Decrease 0 A 63 -A 1E+30 900 0 95 1E430 17.85 0 B 135 -B 1E+30 Cell Constraints Final Shadow Constraint Allowablo Allowable Name Value Price R.H. Side Increase Decrease $B$21 Available time (seconds) 3600 23.75 3600 1E+30 3600 Marketing has suggested a new product (call this product ) that would require 5 seconds of processing time at workstation i = 1,3 seconds of processing time at workstation i = 2, and 8 seconds of processing time at workstation i = 3. What contribution (profit) must this new product have to make it attractive to produce? Remember, we are always seeking a reduced cost of zero. Select one: a. $190 b. $23.75 c. $135 d. $17.85

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