The Following Questions Pertain to the Problem and Spreadsheet Below

question 46

Multiple Choice

The following questions pertain to the problem and spreadsheet below.
A company makes products A and B from 2 resources, labor and material. The company wants to determine the selling price which will maximize profits. A unit of A costs 25 to make and demand is estimated to be 20 - .10 * Price of A. A unit of B costs 18 to make and demand is estimated to be 30 - .07 * Price of B. The utilization of labor and materials and the available quantity of resources is shown in the table. A reasonable price for the products is between 100 and 200.
Let X₁ = demand for As and X₂ = demand for Bs.
Let P₁ = price for As and P₂ = price for Bs

-Refer to Exhibit 8.1. What formula is used in cell B7 of the spreadsheet for this problem?

• A)= 30 - .07 * C3
• B)= 20 - .1 * B3
• C)= B3 -B4
• D)= B5 * B7 + C5 * C7

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Definitions:

Information Crises

Situations where there is a significant gap between the information required to respond to a situation and the information available, leading to decision-making challenges.

Logo Tampering

The act of altering or mishandling a brand's logo without permission, often leading to brand identity issues or legal consequences.

Satisficing

A strategy in decision-making that focuses on achieving an acceptable or sufficient outcome, as opposed to the best possible solution.

Decision-Making Techniques

Methods or procedures applied to make choices among alternatives aimed at solving problems or achieving objectives.