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My question relates to the following book: Spreadsheet Modeling and Decision Analysis eight edition, and the question is related to Case 4.2 on page 184.

My question relates to the following book: Spreadsheet Modeling and Decision Analysis eight edition, and the question is related to Case 4.2 on page 184.

My question is:

"The R & D Department at Parket Sisters has been redesigning the mechanical pencil to make it more profitable. The new design requires 1.1 ounces of plastic, 2.0 ounces of chrome, and 2.0 ounces of stainless steel. If the company can sell one of these new pencils at a net profit of $3.00, should it approve the new design? Explain your response.

I did find this question answered under the textbook solutions, however, I'm not sure if it is right. The answer is not specific as to where or how they found the numbers/answers.

I have attached the sensitivity report below.

image text in transcribed

A B 1 Microsoft Excel 16.0 Sensitivity Report 2 Worksheet: [Case #2.xlsm]Original Problem 3 Report Created: 9/11/2017 4:34:25 PM 6 Variable Cells Final Value Reduced Objective Allowable Allowable Decrease Cell Name Cost Coefficient Increase 700 9SBS4 Number to Produce Ballpoints 10 SC$4 Number to Produce Pencils 11 SD$4 Number to Produce Fountain pens 133.3333333 12 13 Constraints 0 -1.383333333 3 1.383333333 1.75 1E+30 Final Value Shadow Constraint Allowable Allowable Name Price 15 Cell 16 SES8 Plastic Total Used 17 SE$9 Chrome Total Used 18 SE$10 Stainless Steel Total Used 19 20 21 R.H. Side Increase Decrease 1000 1200 2000 555.5555556 333.3333333 1000 1.166666667 200 466.6666667 1E+30 333.3333333 866.6666667 2000 0.8 23

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