Use This Information,along with Its Associated Sensitivity Report,to Answer the Following

question 38

Multiple Choice

Use this information,along with its associated Sensitivity Report,to answer the following questions.
A production manager wants to determine how many units of each product to produce weekly to maximize weekly profits.Production requirements for the products are shown in the following table.
$$\begin{array} { | c | c | c | c | } \hline \underline { \text { Product } } & \frac { \text { Material 1 } } { ( \mathrm { lbs } ) } & \frac { \text { Material 2 } } { ( \mathrm { lbs } . ) } & \text { Labor (hours) } \\\hline \underline { \underline { \mathrm { A } } } & \underline { 3 } & \underline { 2 } & \underline { 4 } \\\hline \underline { \mathrm { B } } & \underline { 1 } & \underline { 4 } & \underline { 2 } \\\hline \underline { \mathrm { C } } & \underline { 5 } & \underline { \text { none } } & \underline { 3.5 } \\\hline\end{array}$$
Material 1 costs $7 a pound,material 2 costs $5 a pound,and labor costs $15 per hour.Product A sells for $101 a unit,product B sells for $67 a unit,and product C sells for $97.50 a unit.Each week there are 300 pounds of material 1;400 pounds of material 2;and 200 hours of labor.The output of product A should not be more than one-half of the total number of units produced.Moreover,there is a standing order of 10 units of product C each week.
$$\begin{array}{l}\text { Formulation }\\\begin{array} { l l } \ { \text { Max } } & 10 \mathrm {~A} + 10 \mathrm {~B} + 10 \mathrm { C } \\\text { Subject to: } & \\& 3 \mathrm {~A} + \mathrm { B } + 5 \mathrm { C } \leq 300 \text { (constraint \#1) } \\& 2 \mathrm {~A} + 4 \mathrm {~B} \leq 400 \text { (constraint \#2) } \\& 4 \mathrm {~A} + 2 \mathrm {~B} + 3.5 \mathrm { C } \leq 200 \text { (constraint \#3) } \\& \mathrm { C } \geq 10 \text { (constraint \#4) } \\& \mathrm { A } , \mathrm { B } , \mathrm { C } \geq 0\end{array}\end{array}$$

-By how much would the profit contribution of product A has to increase before it will be profitable to produce A?

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Definitions:

Learned Responses

Behaviors developed as a result of experience or practice, often through reinforcement or conditioning.

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Innate, typically fixed patterns of behavior in animals in response to certain stimuli.

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Affective states that are experienced as a response to internal or external events and are associated with physiological, behavioral, and cognitive changes.

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Basic physiological needs such as hunger, thirst, and sleep, which motivate behavior to ensure survival.