Scenario: The Primo Insurance Company is introducing two new product lines: special risk insurance and mortgages. The ex

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Scenario The Primo Insurance Company Is Introducing Two New Product Lines Special Risk Insurance And Mortgages The Ex 1 (147.58 KiB) Viewed 102 times

Scenario: The Primo Insurance Company is introducing two new product lines: special risk insurance and mortgages. The expected profit is $5 per unit on special risk insurance and $2 per unit on mortgages. Management wishes to establish sales quotas for the new product lines to maximize total expected profit. The work requirements are as follows: Special Risk 3 Work-Hours per Unit Mortgage 2 Department Underwriting Administration Claims Work-Hours Available 2,400 800 1, 200 0 1 2 0 Questions 1. Formulate a spreadsheet model for this problem. 2. Identify cells using fill color a. The data cells (dark blue). b. The changing cells (yellow). The target cell (orange). 3. Use SUMPRODUCT excel function for each output cell equation. 4. Then use Excel Solver to solve this model. C.