Exhibit 8.1 The Following Questions Pertain to the Problem and Spreadsheet Below

question 71

Multiple Choice

Exhibit 8.1
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 D12 of the spreadsheet for this problem?

• A) =SUMPRODUCT(B3:C3, B12:C12)
• B) =SUMPRODUCT(B4:C4, B12:C12)
• C) =SUMPRODUCT(B5:C5, B12:C12)
• D) =SUMPRODUCT(B7:C7, B12:C12)

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Definitions:

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body has to stress, as proposed by Hans Selye.

Alarm Reaction

Alarm reaction is the initial stage in the stress response, where the body prepares to fight or flee from a perceived threat.

Respiration

The biological process of moving air in and out of the lungs, facilitating the exchange of oxygen and carbon dioxide between the blood and the environment.

Catecholamines

A class of neurotransmitters that include dopamine, norepinephrine, and epinephrine, which are involved in flight or flight responses, mood regulation, and cognitive alertness.