Exhibit 1 A company makes products A and B from 2 resources, labor and material. The company wants to determine the selling price which will maximize profits. A unit of A costs 25 to make and demand is estimated to be 20 - .10 * Price of A. A unit of B costs 18 to make and demand is estimated to be 30 - .07 * Price of B. The utilization of labor and materials and the available quantity of resources is shown in the table. A reasonable price for the products is between 100 and 200. Product A B Available resources Labor (hr/unit) - w 150 Material (ounces/unit) 200 Manufacturing cost($/unit) 25 Demand (units) 20 -.10*P1 30 -.07*P2 Let X1 = demand for As and X2 = demand for Bs. Let P1 = price for As and P2 = price for Bs A B C D E 2 B 3 Price 12.50 223.29 Marginal Cost 25.00 18.00 S Profit Margin 37.50 205.29 7 Demand 8.75 14.37 9 Total Profit 3715.58 10 11 Constraints: Used Available 12 Labor 3.0 2.00 54.99 50.00 13 Material 1.00 2.00 37.49 200.00 Refer to Exhibit 1. What formula is used in cell B9 of the spreadsheet for this problem? O =B3*B7+C3*C7 O =B5*B7+C5*C7 O =(B5-B4)*B7+(C5-C4)*B7 O =B3*B7+C3*B7+B4*B7+C4*B7Refer to Exhibit 1. What formula is used in cell B7 of the spreadsheet for this problem? O = 30 - .07 * C3 O = 20 - .1 * B3 O = B3 - B4 O = B5 * B7 + C5 * C7