Consider the Portion of the Sensitivity Analysis Report That Follows

question 5

Multiple Choice

Consider the portion of the sensitivity analysis report that follows.Decreasing the right-hand constraint Calcium by 1 unit (30 to 29) will result in which of the following? $$\begin{array} { | l | l | l | l | l | l | l | } \hline \text { Constraints } & & & & & & \\\hline \text { Cell } & \text { Name } & \text { Final Value } & \begin{array} { l } \text { Shadow } \\\text { Price }\end{array} & \begin{array} { l } \text { Constrant } \\\text { RH. Side }\end{array} & \begin{array} { l } \text { Allowable } \\\text { Increase }\end{array} & \begin{array} { l } \text { Allowable } \\\text { Decrease }\end{array} \\\hline \$ \mathrm { H } \$ 5 & \text { Calcium } & 30 & 0 & 30 & 0 & 1 \mathrm { E } + 30 \\\hline \$ \mathrm { H } \$ 5 & \text { Protein } & 40 & 0.025 & 40 & 20 & 0 \\\hline \$ \mathrm { H } \$ 7 & \text { Calories } & 18 & 0.25 & 18 & 0 & 6 \\\hline\end{array}$$

• A)decrease cost by $0.225
• B)does not affect cost
• C)increase cost by $0.225
• D)increase cost by $0.025

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Definitions:

Fixed Cost

A recurring cost that does not vary with output or sales volume, including expenses like leases and insurance that remain constant no matter the business activity level.

Value Basis

The underlying value on which something is assessed or calculated, often referring to how assets, liabilities, or equity are valued in financial statements.

Unprocessed Wheat

Wheat that has not undergone any form of processing and remains in its natural state post-harvest.

Granary

A granary is a storage facility for threshed grains or animal feed.