Dunder Miflin Technologies (DMT) produces trendy tablets. Two of its models are the market leaders: Supercool and Ubercool. Supercool has a profit margin of $200 and Ubercool brings in a profit of $250. Producing Supercool requires 1 processor and 2 standard memory chips whereas Ubercool needs 2 processors and 3 premium memory chips. DMT has 150 processors, 120 standard memory chips and 150 premium memory chips. Variable definitions for the linear programming problem, the profit maximization problem and the sensitivity analysis are provided below. You are required to answer the questions which follow using this information.

Let, S = number of Supercool models produced

U = number of Ubercool models produced

Max. 200 S+ 250U

Subject to:

S + 2U < 150 (Processor Constraint)

2S < 120 (Standard Chip Constraint)

3U < 150 (Premium Chip Constraint)

S, U > 0

		Final	Reduced	Objective	Allowable	Allowable
Cell	Name	Value	Cost	Coefficient	Increase	Decrease
$A$2	Supercool	60	0	200	1E+30	75
$B$2	Ubercool	45	0	250	150	XXX
		Final	Shadow	Constraint	Allowable	Allowable
Cell	Name	Value	Price	R.H. Side	Increase	Decrease
$A$9	Processor	150	XXX	150	10	90
$A$10	Standard Chip	120	37.5	120	180	20
$A$11	Premium Chip	135	XXX	150	1E+30	15

1. What is the shadow (dual) price of the constraint Premium Chip?

Group of answer choices

135

150

125

0

2.

10. In the above sensitivity analysis, what is the allowable decrease for the Ubercool model objective coefficient?

Group of answer choices

75

150

250

0

3.

11. What is the shadow (dual) price for the Processor constraint in the sensitivity analysis?

Group of answer choices

90

0

10

125

37.5

4.

12. Suppose Sabre, a chip manufacturer, offers to sell 200 Standard Chips to DMT. At which of the following prices would DMT definitely be willing to purchase these 200 Standard Chips?

I. $6,000

II. $6,500

III. $7,000

Group of answer choices

I and II

I, II and III

II and III

Only II

Only I

5.

13. Suppose that due to a delay at their premium chip supplier, Dunder Miflin obtains 20 fewer premium chips than expected. How will this, if any, affect the optimal solution and the profit?

Group of answer choices

The optimal solution will change but the profit will remain the same.

The optimal solution will change and the optimal profit will decrease.

Both the optimal solution and optimal profit will remain the same.

The optimal solution will stay the same but the profit will decrease.

The optimal solution will change and the profit will increase

6.

14. If the objective function coefficient of Supercool is reduced by more than $100, which of the following could be the new optimal solution for Ubercool?

Group of answer choices

45, 50 and 55 are all possible.

Both 50 and 55 are possible.

45

50

55