Questions 1 through 4 refer to the following sensitivity report (the report shows profits, not costs):
Variable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient !no ease Decrease $8$3 Caps 0 -L193 3 1,298 1e00 $CS3 Jackets 318519 0 6 LOC 1.617 SIDS3 Shirts 98.765 5 4 0.765
Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease %SS cotton 1003 2.963 WOO 133.333 466.667 SES6 leather 227.160 0 1700 1E00 972.810 $E-S7 notions 2000 0.321 2000 1007.673 235.294
1. What is the • - • inal value of one more unit of cotton? Of leather? Ng...L., 40y PI,( r•".• .1- of rozi44 r tS : . 2. A local distributor has offered to sell you an additional 1000 sewing notions (these are zippers, buttons, etc) for $0.10 per notion more than it ordinarily pays. Should the company buy the notions at this price? If you think they should buy , them, what is the total profit the company would make?, • ( 7.34-03 fx,-.41-4 cl o.,-uor4 40.00'..1ge /77 $3140s ok p4.' 6, -3 f,..L4.•-t C =4-.0i e Jr.; 3et_•-• %.to 3. If the per-un on Jackets decreases to15, what Is optimo product mix and wha " the company's total profit? Yte ,,..„, i, 96 ,Le. 09 oir-
4. What must th mum per-unit profit of caps be in order to make them worth o produce?