Question

The Electrotech Corporation manufactures two industrial-sized electrical devices: generators and alternators. Both products require wiring and testing during the assembly process. Each generator requires 2 hours of wiring and 1 hour of testing and can be sold for a $250 profit. Each alternator requires 3 hours of wiring and 2 hours of testing and can be sold for a $150 profit. There are 260 hours of wiring time and 140 hours of testing time available in the next production period, and Electrotech wants to maximize profit. We have formulated and solved this problem earlier.

Create a spreadsheet in excel and develop a sensitivity and answer report. Use the sensitivity and answer report to answer the questions below. Please show your work and where you get the information:

1. The amount of excess hours of wiring and testing capacity is remaining under the optimal solution.
2. If there is a decrease of $50.00 on the generators marginal profit, will the optimal solution change?
3. If there is a increase of $75.00 on the alternators marginal profit, will the optimal solution change?
4. If the marginal profit on generators is decreased by $25.00. Not solving the problem again, what will be the new optimal profit?
5. If there is 10 additional hours of wiring capacity, what is the organizations total profit.
6. In order for the companies production to be justifiable, how much does the profit need to increase on alternators?

Answer 1