This problem will look familiar to you with one piece of information changed from what you saw before. You have a nice place in a rural setting with a little kitchen and a few cows out in the back. You figure you can make $4.5 profit per cake (C) that you can bake or S10 (THIS IS THE CHANGE) profit per dozen cookies (D) you make. The main constraints for you are that you can only use the oven in the kitchen nine hours per day and the oven will only fit one cake or one dozen cookies at one time), and you can only have 10 pounds of butter per day. Each cake takes 45 minutes to bake and requires one half pound of butter. A dozen cookies require 30 minutes in the oven and one pound of butter. You want to maximize profit from production. Use Solver in Excel with the answer and sensitivity reports to find the amount of C and D to maximize profit within the limits set by the constraints. Include your Excel as an attachment to your answer. Then write out complete sentences to the following (you can highlight stuff on your Excel, but please do not make me pick out the answers). a-what amounts of C and D are produced at the optimal level of profit and what is the value of profit? b-what are the limits on the profit per unit for a dozen cookies and still have the original values of C and Din part a still applicable? c-what is the numerical value of the shadow price of the butter constraint and what does the number mean in this specific context? d-what does the value minus 5 for the reduced cost of C mean (other than it is the change in the value of the coefficient in the objective function so that the solution includes a positive amount of C)? This problem will look familiar to you with one piece of information changed from what you saw before. You have a nice place in a rural setting with a little kitchen and a few cows out in the back. You figure you can make $4.5 profit per cake (C) that you can bake or S10 (THIS IS THE CHANGE) profit per dozen cookies (D) you make. The main constraints for you are that you can only use the oven in the kitchen nine hours per day and the oven will only fit one cake or one dozen cookies at one time), and you can only have 10 pounds of butter per day. Each cake takes 45 minutes to bake and requires one half pound of butter. A dozen cookies require 30 minutes in the oven and one pound of butter. You want to maximize profit from production. Use Solver in Excel with the answer and sensitivity reports to find the amount of C and D to maximize profit within the limits set by the constraints. Include your Excel as an attachment to your answer. Then write out complete sentences to the following (you can highlight stuff on your Excel, but please do not make me pick out the answers). a-what amounts of C and D are produced at the optimal level of profit and what is the value of profit? b-what are the limits on the profit per unit for a dozen cookies and still have the original values of C and Din part a still applicable? c-what is the numerical value of the shadow price of the butter constraint and what does the number mean in this specific context? d-what does the value minus 5 for the reduced cost of C mean (other than it is the change in the value of the coefficient in the objective function so that the solution includes a positive amount of C)
