MGMT 430 Sensitivity Analysis Assignment Week 2 Dropbox 3

Reference the following sensitivity report to answer the questions:

Variable Cells
				Final		Reduced	Objective	Allowable	Allowable
	Cell	Name		Value		Cost	Coefficient	Increase	Decrease
	$B$5	Number to Make Chair		0		-230	240	230	1E+30
	$C$5	Number to Make Table		10		0	720	180	120
	$D$5	Number to Make Armoire		15		0	600	120	120
Constraints
				Final		Shadow	Constraint	Allowable	Allowable
	Cell	Name		Value		Price	R.H. Side	Increase	Decrease
	$E$9	Assembly Minutes Used		3600		20	3600	400	600
	$E$10	Finishing Minutes Used		2000		4.5	2000	400	400
	$E$11	Wood Pounds Used		3600		0	4000	1E+30	400

1. What is the optimal solution?
2. Suppose the profit per table changed to $950. Will the optimal solution change, and what can be said about the effect on total profit?
3. Suppose the profit per table changed to $800. Will the optimal solution change, and what can be said about the effect on total profit?
4. Suppose there are 300 less minutes available for Assembly. What can be said about the effect on total profit?
5. Suppose the company had an opportunity to acquire 500 minutes of Finishing capacity for a total cost of $2300. Should they do so? Explain.