Answer Happy

Let x, and x, indicate the quantities of chicken and beef burgers, and the sensitivity report of the spreadsheet result is attached as below: Variable Cells Cell SB$4 SCS4 Name Chicken Burger (1) Beef Burger (X2) Final Value 100 40 Reduced Cost 0 0 Objective Coefficient 18 20 Allowable Increase 1E+30 2.5 Allowable Decrease 2 20 Constraints Shadow Price Cell Name SD$9 Bread LHS $D$10 Cheese LHS SD$11 Chicken LHS SD$12 Beef LHS $D$13 Cooking LHS Final Value 280 180 50 16 3000 000 Constraint R.H. Side 300 200 50 50 3000 Allowable Increase 1E+30 1E+30 25 1E+30 250 Allowable Decrease 20 20 16.66666667 34 1000 4 0.8 Answer the following questions: a) What is the optimal production plan and the optimal revenue? (3 marks) b) What is the impact on total revenue if the store has an increased availability bf chicken by 20 lbs (to a total of 70 lbs)? (3 marks) c) What would happen to the total revenue if one of the workers resigned and the store now only have 2500 minutes to cook the burgers? (3 marks) d) Suppose the selling price of beef burger increases to $22. Show how you can compute the new optimal revenue using the sensitivity report, or explain why you cannot determine the new optimal revenue. (4 marks)
e) Due to the pandemic, the supply of many resources is limited. Suppose the store has faced a decrease supply of both chicken and beef by 10%, and total cooking minutes are also reduced by 10% due to the labor shortages. Show how you can compute the new optimal revenue using the sensitivity report, or explain why you cannot determine the new optimal revenue. (6 marks) f) Due to a negative demand shock of the economy, both prices are adjusted down by 5% compared to the original value. Show how you can compute the new optimal revenue using the sensitivity report, or explain why you cannot determine the new optimal revenue. (6 marks)