The Furniture City (FC) company makes 3 kinds of couches: (1) Standard, (2) Deluxe, and (3) Luxury styles. Each couch goes through 3 production departments: (1) Cutting and Coloring, (2) Assembly, and (3) Finishing. The total number of hours available each month in each of the above departments is 800,400 and 500 , respectively. The time (in hours) required by 3 departments for making each couch and the profit per couch are listed below. The company has a contract of supplying at least a total of 200 Standard and Deluxe couches per month. The company would like to make a production plan to maximize its total profit. Define S, D, L as the variables for the numbers of Standard, Deluxe and Luxury couches produced by the company. Then the corresponding LP model is built as follows: Max160S+190D+250L All variables are non-negative. When the above LP model is solved with Excel, we see the following Sensitivity Report. Adjustable Cells Constraints What is the optimal profit (value of the objective function) for Furniture City? $82,000$50,000 None of the others $120,000$32,000 Which constraints are non-binding? Constraint 1 only Constraints 2 and 4 Constraints 1 and 2 Constraints 3 and 4 Constraints 1 and 3 If 80 additional assembly hours become available at no extra cost, what would happen to the optimal solution and the optimal profit? Both optimal solution and optimal profit would remain the same. Optimal solution would remain the same but optimal profit would decrease. Optimal solution would change and optimal profit would decrease. Optimal solution would change but optimal profit would remain the same. Optimal solution would change and optimal profit would increase. At which of the following price point(s) would FC consider producing Deluxe couches? I. \$192 II. \$194 III. \$196 III only II or III I, II or III None of these prices If the supply contract calls for a minimum of 180 total Standard and Deluxe couches to be made, what would happen to the optimal solution and the optimal profit? Optimal solution would remain the same but optimal profit would decrease Optimal solution would change but optimal profit would remain the same. Both optimal solution and optimal profit would remain the same. Optimal solution would change and optimal profit would increase. Optimal solution would change and optimal profit would decrease. Suppose Sabre, a heavy machinery manufacturer, offers to lease a new finishing machine to FC for 20 additional hours per month. Which lease price(s) below enables FC to make a decision by relying on the sensitivity report alone without having to resolve the problem? I. \$1,800 II. $2,400 III. $3,700 Only II II and III Only I I and III I, II, and III The Furniture City (FC) company makes 3 kinds of couches: (1) Standard, (2) Deluxe, and (3) Luxury styles. Each couch goes through 3 production departments: (1) Cutting and Coloring, (2) Assembly, and (3) Finishing. The total number of hours available each month in each of the above departments is 800,400 and 500 , respectively. The time (in hours) required by 3 departments for making each couch and the profit per couch are listed below. The company has a contract of supplying at least a total of 200 Standard and Deluxe couches per month. The company would like to make a production plan to maximize its total profit. Define S, D, L as the variables for the numbers of Standard, Deluxe and Luxury couches produced by the company. Then the corresponding LP model is built as follows: Max160S+190D+250L All variables are non-negative. When the above LP model is solved with Excel, we see the following Sensitivity Report. Adjustable Cells Constraints What is the optimal profit (value of the objective function) for Furniture City? $82,000$50,000 None of the others $120,000$32,000 Which constraints are non-binding? Constraint 1 only Constraints 2 and 4 Constraints 1 and 2 Constraints 3 and 4 Constraints 1 and 3 If 80 additional assembly hours become available at no extra cost, what would happen to the optimal solution and the optimal profit? Both optimal solution and optimal profit would remain the same. Optimal solution would remain the same but optimal profit would decrease. Optimal solution would change and optimal profit would decrease. Optimal solution would change but optimal profit would remain the same. Optimal solution would change and optimal profit would increase. At which of the following price point(s) would FC consider producing Deluxe couches? I. \$192 II. \$194 III. \$196 III only II or III I, II or III None of these prices If the supply contract calls for a minimum of 180 total Standard and Deluxe couches to be made, what would happen to the optimal solution and the optimal profit? Optimal solution would remain the same but optimal profit would decrease Optimal solution would change but optimal profit would remain the same. Both optimal solution and optimal profit would remain the same. Optimal solution would change and optimal profit would increase. Optimal solution would change and optimal profit would decrease. Suppose Sabre, a heavy machinery manufacturer, offers to lease a new finishing machine to FC for 20 additional hours per month. Which lease price(s) below enables FC to make a decision by relying on the sensitivity report alone without having to resolve the problem? I. \$1,800 II. $2,400 III. $3,700 Only II II and III Only I I and III I, II, and
