Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use Microsoft Excel (Solver) to solve this question. Eastinghouse sells air conditioners. The annual demand for air conditioners in each region of the country is

Use Microsoft Excel (Solver) to solve this question.

Eastinghouse sells air conditioners. The annual demand for air conditioners in each region of the country is as follows: East, 100,000; South, 150,000; Midwest, 110,000; and West, 90,000. Eastinghouse is considering building its air conditioners in four different cities: New York, Atlanta, Chicago, and Los Angeles. The cost of producing an air conditioner in a city and shipping it to a region of the country is given in the excel template file. Any factory can produce up to 150,000 air conditioners per year. The annual fixed cost of operating a factory in each city is given in the same file. At least 50,000 units of the Midwest demand for air conditioners must come from New York, and at least 50,000 units of the Midwest demand must come from Atlanta. Determine how Eastinghouse can minimize the annual cost of meeting demand for air conditioners.

The Excel model is given below. Please solve this showing all the formulas, calculations, and filling in all missing information using Solver in Microsoft Excel.

Will like the answer if the question is fully answered along with Excel screenshots for formulas and answers.

image text in transcribed Selling air conditioners \begin{tabular}{|l|r|r|r|r|} \hline Unit production and shipping costs & & & & \\ \hline From\To & East & South & Midwest & West \\ \hline NY & $206 & $225 & $230 & $290 \\ \hline Atlanta & $225 & $206 & $221 & $270 \\ \hline Chicago & $230 & $221 & $208 & $262 \\ \hline LA & $290 & $270 & $262 & $215 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|} \hline Annual fixed costs (millions of dollars) & & Capacity \\ \hline NY & $6,000,000 & 150000 \\ \hline Atlanta & $5,500,000 & 150000 \\ \hline Chicago & $5,800,000 & 150000 \\ \hline LA & $6,200,000 & 150000 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline NY & City used (Yes/No) \\ \hline Atlanta & & \\ \hline Chicago & & \\ \hline LA & & \\ \hline \end{tabular} Air-conditioners produced and shipped From\To NY Atlanta Chicago LA Total shipped Demand Constraints on Midwest demand From NY From Atlanta Summary of costs Total fixed cost Total shipping cost Total cost \begin{tabular}{l|l|l|l|l|l|l|} B & C & D & E & F & G & H \end{tabular} \begin{tabular}{|r|r|r} & & \\ \hline East & South & Midwest \\ \hline$206 & $225 & $230 \\ \hline$225 & $206 & $221 \\ \hline$230 & $221 & $208 \\ \hline$290 & $270 & $262 \\ & & \\ \hline$6,000,000 & & 150000 \\ $55,500,000 & & 150000 \\ $5,800,000 & & 150000 \\ $6,200,000 & & 150000 \\ & & \\ \hline \end{tabular} East South Midwest West Total produced Effective capacity Selling air conditioners \begin{tabular}{|l|r|r|r|r|} \hline Unit production and shipping costs & & & & \\ \hline From\To & East & South & Midwest & West \\ \hline NY & $206 & $225 & $230 & $290 \\ \hline Atlanta & $225 & $206 & $221 & $270 \\ \hline Chicago & $230 & $221 & $208 & $262 \\ \hline LA & $290 & $270 & $262 & $215 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|} \hline Annual fixed costs (millions of dollars) & & Capacity \\ \hline NY & $6,000,000 & 150000 \\ \hline Atlanta & $5,500,000 & 150000 \\ \hline Chicago & $5,800,000 & 150000 \\ \hline LA & $6,200,000 & 150000 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline NY & City used (Yes/No) \\ \hline Atlanta & & \\ \hline Chicago & & \\ \hline LA & & \\ \hline \end{tabular} Air-conditioners produced and shipped From\To NY Atlanta Chicago LA Total shipped Demand Constraints on Midwest demand From NY From Atlanta Summary of costs Total fixed cost Total shipping cost Total cost \begin{tabular}{l|l|l|l|l|l|l|} B & C & D & E & F & G & H \end{tabular} \begin{tabular}{|r|r|r} & & \\ \hline East & South & Midwest \\ \hline$206 & $225 & $230 \\ \hline$225 & $206 & $221 \\ \hline$230 & $221 & $208 \\ \hline$290 & $270 & $262 \\ & & \\ \hline$6,000,000 & & 150000 \\ $55,500,000 & & 150000 \\ $5,800,000 & & 150000 \\ $6,200,000 & & 150000 \\ & & \\ \hline \end{tabular} East South Midwest West Total produced Effective capacity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Future Of Audit Keeping Capital Markets Efficient

Authors: Keith Houghton, Christine Jubb, Michael Kend, Juliana Ng

1st Edition

1921666501, 978-1921666506

More Books

Students also viewed these Accounting questions

Question

Define the savings rate.

Answered: 1 week ago

Question

What is the average Revenue per customer? script

Answered: 1 week ago

Question

Define procedural justice. How does that relate to unions?

Answered: 1 week ago