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. Problem Two: Chelsea Furniture produces three lines of office chairs for corporate clients, model A, model B and model C. Given demand studies, the
. Problem Two: Chelsea Furniture produces three lines of office chairs for corporate clients, model A, model B and model C. Given demand studies, the company expects the demand for model A to be at least 400 units per day. In contrast, the demand for model B is expected to be at least 250 units per day. The demand for model C is expected to be at least 175 units per day. Due to limitations in their manufacturing facility, the company cannot exceed 750 units for model A, 475 units for model B, and 315 units for model C. Based on pre-existing contracts, the company has a contractual obligation to send at least 1,135 units every day. In addition, to prevent brand dilution, the marketing department asks to produce at most 1,400 units in total. If the sale of each model A yields a $125 profit, the sale of each model B results in a $88 profit, and each sold model C unit contributes $78 in profits, (a) how many units of each model should the company produce to maximize daily profits? (b) Create a Sensitivity Report and state, both the Reduced Cost, and the Shadow Price, (c) interpret the significance of both, Reduced Cost and the Shadow Price, (d) suppose the company cannot exceed 751 units for model A, how does that impact your optimal profit? (e) Suppose the marketing department decides to produce at most 1401 total units, how does that impact your optimal profit in your original model
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