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PART 2: Identifying goals and shortfalls The goals are the values the decision makers would ideally like to achieve for each objective. In the problem of MTV steel, the CEO, knowing that the maximum achievable profit is $55,000 may choose to set this value as the target to reflect the goal of achieving the highest possible profit. Knowing that the minimum achievable cost of imports is $39,800, the CEO may choose this or some other value as the goal. Let's say that the CEO will be satisfied if an attempt is made to achieve an import cost of $40,000. The CEO says this goal of $40,000 can be violated if doing so results in a significant improvement in profits. In summary the goals are: Goal 1: Profits of $55,000 Goal 2: Import cost of $40,000. Let's identify how much each point along the efficient frontier you identified in Part 1 deviates from each goal. Starting with the table you created in Part 1, complete the following table. Note that column 3 you identified in Part 1. Three of the rows have been completed for you as examples. Profit Profit goal shortfall Import Cost Import cost goal shortfall $42,667-$40,000 = $2667 $2067 Goal achieved $55,000-$54,800 = $200 $42,667 $42,067 = $55,000 $54,800 $54,600 $54,400 $54,200 $54,000 $53,800 $53,600 $1400 $39,800 Goal achieved For part 2, submit the foregoing table. On the basis of these shortfalls, which solution (i.e., what combination of shortfalls from profit and import cost goals) looks attractive now? Why? PART 2: Identifying goals and shortfalls The goals are the values the decision makers would ideally like to achieve for each objective. In the problem of MTV steel, the CEO, knowing that the maximum achievable profit is $55,000 may choose to set this value as the target to reflect the goal of achieving the highest possible profit. Knowing that the minimum achievable cost of imports is $39,800, the CEO may choose this or some other value as the goal. Let's say that the CEO will be satisfied if an attempt is made to achieve an import cost of $40,000. The CEO says this goal of $40,000 can be violated if doing so results in a significant improvement in profits. In summary the goals are: Goal 1: Profits of $55,000 Goal 2: Import cost of $40,000. Let's identify how much each point along the efficient frontier you identified in Part 1 deviates from each goal. Starting with the table you created in Part 1, complete the following table. Note that column 3 you identified in Part 1. Three of the rows have been completed for you as examples. Profit Profit goal shortfall Import Cost Import cost goal shortfall $42,667-$40,000 = $2667 $2067 Goal achieved $55,000-$54,800 = $200 $42,667 $42,067 = $55,000 $54,800 $54,600 $54,400 $54,200 $54,000 $53,800 $53,600 $1400 $39,800 Goal achieved For part 2, submit the foregoing table. On the basis of these shortfalls, which solution (i.e., what combination of shortfalls from profit and import cost goals) looks attractive now? Why