Refer to the image below. The marketing department wants to give a Sale offer on

Question

Refer to the image below. The marketing department wants to give a Sale offer on its chairs, reducing the profit per unit by $1 (The new profit will be $4). Which of the following statements is true? Since the allowable decrease is 1.5, such a discount is invalid. Reduced cost for chairs is zero. Therefore, the change in profit because of this decision will also be zero. The optimal number of chairs to produce will still be 360. The table in the image is not helpful. We need to use Solver to get the optimal solution.

Explanation / Answer

The best fit option is:

Answer : The optimal number of chairs to produce will still be 360.

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