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Using Solver, can you help me understand this question? Instructions: (20 points) Read the following scenario first and then complete the problem using Solver. State

Using Solver, can you help me understand this question?

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Instructions: (20 points) Read the following scenario first and then complete the problem using Solver. State your answers below the output in the designated area. The Style and Comfort Furniture Manufacturing Company wishes to determine its production schedule for the next quarter. The company produces four types of furniture, including sofas, love seats, recliners, and coffee tables. The profit contribution for selling each is as follows: Item Sofa Love Seat Recliner Coffee Table Profit $ 120 $ 105 $ 150 $ 73 The quarterly production budget is set at $180,000. Each unit of a sofa, love seat, recliner, and coffee table costs the following: Item Sofa Love Seat Recliner Coffee Table lost $ 400 $ 300 |$ 500 $ 150 The sales forecasts indicate that the potential sales volume is limited to the following: Sofa Love Seat Recliner Coffee Table Sales Limits 200 150 100 400 There is an aggregate of 800 machine hours available and 1,200 labor hours available. Item: Sofa Love Seat Recliner Coffee Table Machine Hours/Un 2.2 Labor Hours/Unit 2.5 0.75 The management also imposed the policy that there must be at least 30 love seats manufactured Let x1 be the Sofas, x2 be the Love Seats, x3 be the Recliners, and x4 be the Coffee Tables Now let's state the objective function: Maximize profit = 120*x1 + 105*x2 + 150*x3 + 73*x4 Now let's state the constraints mathematically: Budget 400x1 + 300x2 + 500 x3 + 150 x4 30 Here is the spreadsheet model for the problem. YOU DO NOT HAVE TO CHANGE ANYTHING HERE! Love Seat Recliner Coffee Table Unit profit $ 120 $ 105 |$ 150 |$ 73 Total Profit Quantities Right Hand Actual Constraints Sofas Love Seat Recliner Coffee Table |Inequality Side Usage udget 400 300 500 150 180000 Sofa Sales Volume o o 200 Love Seat Sales Volume 150 Recliner Sales Volume -o 100 Coffee Table Sales Volume 400 Machine Hours Capacity 2.5 2 .2 0.75 800 Labor Hour Capacity 1200 Min. Production Requirement Here is what you need to do!! (5 Points) Set up the formulas in cells 142 and 146:153. Set up the constraints in Solver and run it (be sure to choose the Simplex LP method). Choose to display the Answer Report and the Sensitivity Report. Answer the following questions based on those reports. 1 (5 Points) What is the optimal solution? Note, it is OK to report fractional values. 2 (5 Points) Specify the Slack for the following constraints. Explain what that means with respect to the problem. Constraint Slack Interpretation of Slack Budget Sofa Sales Volume Labor Hour Capacity 3 (5 Points) Explain what the Shadow Price means for the Recliner Sales Volume constraint only

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