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 XXXXXXXXXXLOC 1.617 SIDS3 Shirts XXXXXXXXXX
Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease %SS cotton XXXXXXXXXXWOO XXXXXXXXXXSES6 leather XXXXXXXXXX1E XXXXXXXXXX $E-S7 notions XXXXXXXXXX XXXXXXXXXX
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?, • XXXXXXXXXXfx,-.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?