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:

Immaterial Variances

Minor variances in accounting that are not significant enough to affect decision-making processes.