Again continuing Problem 2, perform a sensitivity analysis where the selling prices of Basics and…

Again continuing Problem 2, perform a sensitivity analysis where the selling prices of Basics and XPs simultaneously change by the same percentage, but the selling price of VXPs remains at its original value. Let the percentage change vary from 225% to 50% in increments of 5%, and keep track of the values in the decision variable cells and the total profit. Discuss your findings.

Problem 2

In PC Tech’s product mix problem, assume there is another PC model, the VXP, that the company can produce in addition to Basics and XPs. Each VXP requires eight hours for assembling, three hours for testing, $275 for component parts, and sells for $560. At most 50 VXPs can be sold.

a. Modify the spreadsheet model to include this new product, and use Solver to find the optimal product mix.

b. You should find that the optimal solution is not integer-valued. If you round the values in the decision variable cells to the nearest integers, is the resulting solution still feasible? If not, how might you obtain a feasible solution that is at least close to optimal?