Consider the Portion of the Sensitivity Analysis Report That Follows

question 17

Multiple Choice

Consider the portion of the sensitivity analysis report that follows.Decreasing the right-hand side constraint by 1 unit for $I$8 (from 150 to 149) will result in which of the following? $$\begin{array} { | l | l | l | l | l | l | l | } \hline \text { Cell } & \text { Name } & \begin{array} { l } \text { Final } \\\text { Value }\end{array} & \begin{array} { l } \text { Shadow } \\\text { Price }\end{array} & \begin{array} { l } \text { Constraint } \\R \mathrm { H } \text {. Side }\end{array} & \begin{array} { l } \text { Allowable } \\\text { Increase }\end{array} & \begin{array} { l } \text { Alowable } \\\text { Decrease }\end{array} \\\hline \$ 1 \$ 7 & \begin{array} { l } < = \\\text { Usage }\end{array} & 240 & 0.6 & 240 & 210 & 40 \\\hline \$ 1 \$ 8 & \begin{array} { l } < = \\\text { Usage }\end{array} & 150 & 3.2 & 150 & 30 & 70 \\\hline\end{array}$$

• A)decrease the profit by $0.6
• B)increase the profit by $3.2
• C)increase the profit by $0.6
• D)decrease the profit by $3.2

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Definitions:

Sound Judgment

The ability to make sensible, wise, and well-informed decisions based on the available information.

Communication Competency

The ability to effectively convey and receive messages in interpersonal and group settings, encompassing both verbal and non-verbal skills.

Business Objectives

The specific goals or aims that an organization seeks to achieve, guiding its operational and strategic direction.

Observable

Capable of being seen or noticed through direct observation.