A furniture company manufactures desks and chairs. Each desk uses 4 units of woo
ID: 3268175 • Letter: A
Question
A furniture company manufactures desks and chairs. Each desk uses 4 units of wood, and each chair uses 3 units of wood. A desk contributes $400 to profit, and a chair contributes $250. Marketing restrictions require that the number of chairs produced be at least twice the number of desks produced. There are 2000 units of wood available.
Let d denote the number of desks produced and let c be the number of chairs produced.
After running Solver, you obtain the sensitivity report. Which of the following interpretations is correct?
If the profit margin for chairs increases by more than $50, the optimal solution to the problem might change.
If the profit margin for chairs increases by less than $50, the profit will not change.
If the number of chairs produced changes by less than 50, profit will not change.
If we produce less than 450 chairs, the profit is negative.
Variable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $B$10 Units produced Desks 200 0 400 1E+30 66.66666667 $C$10 Units produced Chairs 400 0 250 50 450 Constraints Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease $B$14 Wood_used 2000 90 2000 1E+30 2000 $B$18 Chairs_produced 400 -20 0 666.6666667 1000Explanation / Answer
Answer
(b) if the profit margin for chairs increases by less than $50, the profit will not change.
Reason Because the allowable increase is $50, so if the profit margin increases by less than that, the profit doesnt change.
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