You Have Been Given the Following Linear Programming Model and Excel

question 85

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?
MIN: $\quad 8 X _ { 1 } + 3 X _ { 2 }$
Subject to: $\quad X _ { 2 } \geq 8$
$\begin{array} { l } 8 \mathrm { X } _ { 1 } + 5 \mathrm { X } _ { 2 } \geq 80 \\3 \mathrm { X } _ { 1 } + 5 \mathrm { X } _ { 2 } \geq 60 \\\mathrm { X } _ { 1 } , \mathrm { X } _ { 2 } \geq 0\end{array}$ $$\begin{array} { | c | c | c | c | c | c | } \hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\hline 1 & & & & & \\\hline 2 & & & & & \\\hline 3 & & \mathrm { X } _ { 1 } & \mathrm { X } _ { 2 } & & \\\hline 4 & \text { Number to make: } & & & & \text { OBJ. FN. VALUE } \\\hline 5 & \text { Unit profit: } & 8 & 3 & & \\\hline 6 & & & & & \\\hline 7 & \text { Constraints: } & & & \text { Used } & \text { Available } \\\hline 8 & 1 & & 1 & & 8 \\\hline 9 & 2 & 8 & 5 & & 80 \\\hline 10 & 3 & 3 & 5 & & 60 \\\hline\end{array}$$

---

Definitions:

Profit

The difference between the amounts received from customers for goods or services provided and the amounts paid for the inputs used to provide the goods or services.

Direct Materials Cost

The expense associated with raw materials directly incorporated into a finished product.

Break-even Point

Break-even Point is the financial analysis term that indicates when total costs and total revenues are exactly equal, resulting in neither profit nor loss.

Mixed Costs

Costs with both variable and fixed characteristics, sometimes called semivariable or semi-fixed costs.