Excel's Solver Tool Has Been Used in the Spreadsheet Below $\text { Input Section }$

question 5

Essay

Excel's Solver tool has been used in the spreadsheet below to solve a linear programming problem with a minimization objective function and all  constraints. $\text { Input Section }$

$\text { Objective Function Coefficients }$
$\begin{array}{|c|c|c|c|c|}\hline && x & y & \\\hline && 5 & 4 & \\\hline &&&&\\\hline &\text { Constraints } & & & \text { Req'd } \\\hline &\# 1 & 4 & 3 & 60 \\\hline &\# 2 & 2 & 5 & 50 \\\hline &\# 3 & 9 & 8 & 144 \\\hline\end{array}$

$\text { Output Section }$
$\begin{array}{|c|c|c|c|c|}\hline &&&&\\\hline &\text { Variables } & 9.6 & 7.2 & \\\hline &\text { Profit } & 48 & 28.8 & 76.8 \\\hline &&&&\\\hline &\text { Constraint } & \text { Usage } & \text { Slack } \\\hline &\# 1 & 60 & 1.35 \mathrm{E}-11 \\\hline &\# 2 & 55.2 & -5.2 \\\hline &\# 3 & 144 & -2.62 \mathrm{E}-11 \\\hline &&&&\\\hline\end{array}$
a.Give the original linear programming problem.
b.Give the complete optimal solution.

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Absorption Costing

This method includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Markup

The amount added to the cost price of goods to cover overhead and profit, expressed as a percentage of the cost price.

Selling Price

The amount for which a product or service is sold to customers.