explanation on why the answers are correct
EC distributes its new product through four channels: Marine M, Business B, National Retail N, and Direct Mail D. Profit per unit sold by distribution channel are: Marine $90/unit, Business S84/unit, National $70/unit, and Direct S60/unit. The objective is to determine how many units of EC's new product each channel should distribute to maximize total profit. Variable Cells Cell Name $B$10 Units M $C$10 Units B $D$10 Units N $E$10 Units D Final Reduced Objective Allowable Allowable Value Cost Coefficient increase Decrease 25 901E+ 306 4250 6 34 0 70 17 1E+30 0 - 45 60 451E+30 150 Constraints Cell Name $B$15 Budget LHS $B$16 Sales Force LHS $B$17 Production LHS $B$18 National LHS Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease 5000 3 5000 8 50 50 1775 0 1800 1E+30 600 60 600 3.571428571 150 -17 150 Variable Cells Final Reduced Objective Cell Names Value Cost Coefficient $B$10 Units M 90 SCS10 Units B 4250 $D$10 Units N 150 SE$10 Units D 0 45 Allowable Allowable increase Decrease 1+30 25 45 130 Constraints Final Shadow Constraint Allowable Allowable Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease $B$15 Budget LHS5000 3 5000 850 $B$16 Sales Force UHS 1775 0 1800 18:30 25 $B$17 Production HS 600 60 600 3.571428571 $B$18 National LHS 150 -17 1 50 5 0 1. If the objective coefficient for M decreases by 5, from $90 to $85, then: a The optimal solution will remain the same, the total profit will remain the same The optimal solution will change, the total profit will remain the same The optimal solution will remain the same, the total profit will change d. The optimal solution will change, the total profit will change 2. Reduced cost: Select the correct statement The coefficient for D has to be 105 or more in order for to be attractice b. The coefficient for D has to be 15 or more in order for D to be attractive The coefficient for D has to be 15 or less in order for D to be attractive d. The coefficient for D has to be 105 or less in order for D to be attractive 3. If the Right Hand side of " constraint (Budget) increases by 500, from 5000 to 5500, then The total profit will decrease by 5003 The total profit will increase by 5003 C. The total profit will be 500"3 d. We do not know, we need to re-run SOLVER EC distributes its new product through four channels: Marine M, Business B, National Retail N, and Direct Mail D. Profit per unit sold by distribution channel are: Marine $90/unit, Business S84/unit, National $70/unit, and Direct S60/unit. The objective is to determine how many units of EC's new product each channel should distribute to maximize total profit. Variable Cells Cell Name $B$10 Units M $C$10 Units B $D$10 Units N $E$10 Units D Final Reduced Objective Allowable Allowable Value Cost Coefficient increase Decrease 25 901E+ 306 4250 6 34 0 70 17 1E+30 0 - 45 60 451E+30 150 Constraints Cell Name $B$15 Budget LHS $B$16 Sales Force LHS $B$17 Production LHS $B$18 National LHS Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease 5000 3 5000 8 50 50 1775 0 1800 1E+30 600 60 600 3.571428571 150 -17 150 Variable Cells Final Reduced Objective Cell Names Value Cost Coefficient $B$10 Units M 90 SCS10 Units B 4250 $D$10 Units N 150 SE$10 Units D 0 45 Allowable Allowable increase Decrease 1+30 25 45 130 Constraints Final Shadow Constraint Allowable Allowable Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease $B$15 Budget LHS5000 3 5000 850 $B$16 Sales Force UHS 1775 0 1800 18:30 25 $B$17 Production HS 600 60 600 3.571428571 $B$18 National LHS 150 -17 1 50 5 0 1. If the objective coefficient for M decreases by 5, from $90 to $85, then: a The optimal solution will remain the same, the total profit will remain the same The optimal solution will change, the total profit will remain the same The optimal solution will remain the same, the total profit will change d. The optimal solution will change, the total profit will change 2. Reduced cost: Select the correct statement The coefficient for D has to be 105 or more in order for to be attractice b. The coefficient for D has to be 15 or more in order for D to be attractive The coefficient for D has to be 15 or less in order for D to be attractive d. The coefficient for D has to be 105 or less in order for D to be attractive 3. If the Right Hand side of " constraint (Budget) increases by 500, from 5000 to 5500, then The total profit will decrease by 5003 The total profit will increase by 5003 C. The total profit will be 500"3 d. We do not know, we need to re-run SOLVER
