You Have Been Given the Following Linear Programming Model and Excel

question 44

Essay

You have been given the following linear programming model and Excel spreadsheet to solve this problem. What formulas should be entered into cells E5 and D8:D10 to implement this model?
$$\begin{array} { l l } \text { MAX: } & 2 X _ { 1 } + 7 X _ { 2 } \\\text { Subject to: } & 5 X _ { 1 } + 9 X _ { 2 } \leq 90 \\& 9 X _ { 1 } + 8 X _ { 2 } \leq 144 \\& X _ { 2 } \leq 8 \\& X _ { 1 } , X _ { 2 } \geq 0\end{array}$$ $$\begin{array} { | c | c | c | c | c | c | } \hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\hline 1 & & & & & \\\hline 2 & & & & & \\\hline 3 & & \mathrm { X } _ { 1 } & \mathrm { X } _ { 2 } & & \\\hline 4 & \text { Number to make: } & & & & \text { OBJ. FN. VALUE } \\\hline 5 & \text { Unit profit: } & 2 & 7 & & \\\hline 6 & & & & & \\\hline 7 & \text { Constraints: } & & & \text { Used } & \text { Available } \\\hline 8 & 1 & 5 & 9 & & 90 \\\hline 9 & 2 & 9 & 8 & & 144 \\\hline 10 & 3 & 0 & 1 & & 8 \\\hline\end{array}$$

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including direct materials, direct labor, and manufacturing overhead.

Income Summary Account

An account used in the closing process that summarizes the revenues and expenses of a period, ultimately transferring the net income or loss to retained earnings.

Accounting Period

The time span for which financial statements are prepared, typically a year, a quarter, or a month.

Actual Manufacturing Overhead

The real expenses incurred during the manufacturing process, excluding direct labor and raw material costs, such as utilities, depreciation, and maintenance.