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Exhibit 81
the Following Questions Pertain to the Problem and Spreadsheet

question 43

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.
 Product  A  B  Avalable resources  Labor hr/unit)  32150 Material ounces/unit)  12200 Manufacturing cost$/unit)  2518 Demand units)  20.10P130.07P2\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
 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 X<sub>1 </sub>= demand for As and X<sub>2 </sub>= demand for Bs.Let P<sub>1 </sub>= price for As and P<sub>2 </sub>= price for Bs    -An office supply company is attempting to determine the order quantity for laser printer toner cartridges which are sold to local businesses.Annual demand is 20,000 units and each cartridge costs the store $25.It costs $30 to place An order and the inventory carrying cost rate is 25% of the value of the item.The following spreadsheet has been set up to solve the problem.What cell is the objective cell in this problem?  \begin{array}{|c|c|c|} \hline & \text { A } & \text { B } \\ \hline 1 & &  \\ \hline2&&\\ \hline 3 & \begin{array}{c} \text { Annual } \\ \text { Demand: } \end{array} &20,000 \\ \hline 4 & & \\ \hline 5 & \begin{array}{c} \text { Cost per } \\ \text { Unit: } \end{array} & 25 \% \\ \hline 6 & \begin{array}{c} \text { Ordering } \\ \text { Cost: } \end{array} &\$30 \\ \hline 7 & \begin{array}{c} \text { Carrying } &\\ \text { Cost: } \end{array} &25\% \\ \hline 8 & & \\ \hline 9 & \text { Order }& 783.73\\ & \text { Quantity: } \\ \hline 10 &   \\ \hline 11 &\text { Total Cost: } &\$ 502,738.61 \\ \hline \end{array}  A) B3 B) B7 C) B9 D) B11
-An office supply company is attempting to determine the order quantity for laser printer toner cartridges which are sold to local businesses.Annual demand is 20,000 units and each cartridge costs the store $25.It costs $30 to place
An order and the inventory carrying cost rate is 25% of the value of the item.The following spreadsheet has been set up to solve the problem.What cell is the objective cell in this problem?
 A  B 123 Annual  Demand: 20,00045 Cost per  Unit: 25%6 Ordering  Cost: $307 Carrying  Cost: 25%89 Order 783.73 Quantity: 1011 Total Cost: $502,738.61\begin{array}{|c|c|c|}\hline & \text { A } & \text { B } \\\hline 1 & & \\\hline2&&\\\hline 3 & \begin{array}{c}\text { Annual } \\\text { Demand: }\end{array} &20,000 \\\hline 4 & & \\\hline 5 & \begin{array}{c}\text { Cost per } \\\text { Unit: }\end{array} & 25 \% \\\hline 6 & \begin{array}{c}\text { Ordering } \\\text { Cost: }\end{array} &\$30 \\\hline 7 & \begin{array}{c}\text { Carrying } &\\\text { Cost: }\end{array} &25\% \\\hline 8 & & \\\hline 9 & \text { Order }& 783.73\\& \text { Quantity: } \\\hline 10 & \\\hline 11 &\text { Total Cost: } &\$ 502,738.61 \\\hline\end{array}

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