Exhibit 81
the Following Questions Pertain to the Problem and Spreadsheet

question 62

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.
$\begin{array}{lccc}\text { Product } & \text { A } & \text { B } & \text { Avalable resources } \\\hline \text { Labor hr/unit) } & 3 & 2 & 150 \\\text { Material ounces/unit) } & 1 & 2 & 200 \\\text { Manufacturing cost\$/unit) } & 25 & 18 & \\\text { Demand units) } & 20-.10^{*} \mathrm{P}_{1} & 30-.07^{*} \mathrm{P}_{2} &\end{array}$
Let X₁ = demand for As and X₂ = demand for Bs.Let P₁ = price for As and P₂ = price for Bs

-A company wants to locate a new warehouse to minimize the distance traveled by its delivery trucks.It has four stores and their coordinates are listed in the accompanying spreadsheet.What formula goes in cell D9 of the spreadsheet?
$$\begin{array} { | r | c | c | c | r | } \hline & \text { A } & \mathrm { B } & \mathrm { C } & \mathrm { D } \\\hline 1 & & & & \\\hline 2 & & \text { X-Coordinate } & \text { Y-Coordinate } & \\\hline 3 & \text { Warehouse } & 103.800 & 101.000 & \text { Distance: } \\\hline 4 & \text { Store 1 } & 100 & 130 & 70.082 \\\hline 5 & \text { Store 2 } & 90 & 60 & 84.424 \\\hline 6 & \text { Store 3 } & 210 & 80 & 50.749 \\\hline 7 & \text { Store 4 } & 180 & 110 & 18.532 \\\hline 8 & & & & \\\hline 9 & & \text { Total Distance: } &223.787 & \\\hline\end{array}$$

• A)=MIND4:D7)^2
• B)=SUMD4:D7)
• C)=SQRTD4^2+D5^2+D6^2+D7^2)
• D)=SQRTMMULTB3:C3,D4:D7))

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Definitions:

Total Profits

The sum total of income generated by a business after subtracting all costs and expenses.

Purely Competitive

A market structure characterized by many sellers offering identical products to many buyers, with no single seller or buyer able to influence the market price.

Profit-maximizing

A strategic approach aimed at increasing a firm's profits to the highest possible level given its production costs and market conditions.

Purely Competitive

A market configuration where numerous small businesses produce the same goods and face no entry or exit obstacles.