Kingsoft Office Answer Report Worksheet: [Book1.xls]Sheet1 Report Created: 7/16/2016 2:29:40 PM Result: Solver found a solution. All Constraints and optimality conditions are satisfied. Solver Engine Engine: Simplex LP Solution Time: 4.459 Seconds. Iterations: 5 Subproblem: 0 Solver Options Max Time 4 sec, Iterations Unlimited Max Subproblems Unlimited, Max Integer Solutions Unlimited, Integer Tolerance1%, Solve Without Integer C Objective Cell (Max) Cell Name $G$11 advertising profit Level of Activity Original Value 0 Final Value 7640 Variable Cells Cell $E$10 x1 $F$10 x2 Original Value 0 0 Final Value 8000 10000 Name Constraints Cell Name $G$15 distribute(real estate) Level of Activity $G$14 distribute(restaurant/entertainment) Level of Activity $G$13 Shelf space Level of Activity $G$12 Budget Level of Activity Cell Value 10000 8000 18000 3860 Formula $G$15>=$I$15 $G$14>=$I$14 $G$13<=$I$13 $G$12<=$I$12 Solve Without Integer Constraints, Assume NonNegative Integer Contin Contin Status Slack Not Binding 2000 Binding 0 Binding 0 Not Binding 140 Kingsoft Office Sensitivity Report Worksheet: [Book1.xls]Sheet1 Report Created: 7/16/2016 2:29:40 PM Variable Cells Cell $E$10 x1 $F$10 x2 Name Final Reduced Objective Value Cost Coefficient 8000 0 0.33 10000 0 0.5 Constraints Cell $G$15 $G$14 $G$13 $G$12 Final Shadow Constraint Name Value Price R.H. Side distribute(real estate) Level of Activity 10000 0 8000 distribute(restaurant/entertainment) Level of Activity 8000 -0.17 8000 Shelf space Level of Activity 18000 0.5 18000 Budget Level of Activity 3860 0 4000 Allowable Allowable Increase Decrease 0.17 1.00E+30 1.00E+30 0.17 Allowable Allowable Increase Decrease 2000 1.00E+30 2000 1750 560 2000 1.00E+30 140 Kingsoft Office Limits Report Worksheet: [Book1.xls]Sheet1 Report Created: 7/16/2016 2:29:40 PM Objective Cell Name Value $G$11 advertising profit Level of Activity 7640 Cell $E$10 x1 $F$10 x2 Variables Name Value 8000 10000 Lower Objective Limit Result 8000 7640 8000 6640 Upper Objective Limit Result 8000 7640 10000 7640 Advertising profit Budget Shelf space Distribute (Restaurant guide) Distribute (Real Estate guide) Formula Z=0.33x1+0.5x2 0.17x1+0.25x2<=4000 x1+x2<=18000 x1>=8000 x2>=8000 x1>=0 x2>=0 Restaurant guide Real estate guide x1 x2 8000 10000 0.33 0.5 0.17 0.25 1 1 1 0 0 1 estate guide Constraint Level of Activity 7640 3860 <= 18000 <= 8000 >= 10000 >= 4000 18000 8000 8000 The Island Publishing Company publishes two types of magazine on a monthly basis, a restaurant and entertainment guide and a real estate guide. The company distributes the magazine free to businesses, hostels, and stores on Hitlon Head Island in South Carolina. The company's profits come exclusively from the paid advertising in the magazines. Each of the restaurant and entertainment guide distributed generates $0.50 per magazine in advertising revenue, whereas the real estate guide generates $0.75 per magazine. The real estate magazine is a more sophisticated publication that includes colour photos and accordingly it costs $0.25 per magazine to print, compared with only $0.17 for the restaurant and entertainment guides. The publishing company has a printing budget of $4,000 per month. There is enough rack space to distribute at most 18,000 magazines each month. In order to entice businesses to place advertisements, Island Publishing promises to distribute at least 8,000 copies of each magazine. The company wants to determine the number of copies of each magazine it should print each month in order to maximize advertising profit. Note: 1 X = number of copies of magazine about a restaurant and entertainment guide should be printed per month, and 2 X = number of copies of magazine about a real estate guide should be printed per month. (a) Using the Linear Programing computer (Solver), find the company's most profitable production for each magazine per month and determine the maximization value of advertising profit. (5 marks) (b) Based on the sensitivity report, does the company spend its all printing budget? If not, how much slack is left over