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# You class discussion class linear programming useful

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Unformatted text preview: ramming Useful Useful EXCEL EXCEL Eases computation Base Case Base TOTAL COST = \$19,860,000 TOTAL REVENUE = \$ 53,500,000 PROFIT = \$33,640,000 Sandra’s Plan Sandra’s TOTAL COST = \$ 21,030,000 TOTAL REVENUE = \$ 55,130,000 PROFIT = \$ 34,100,000 Bill’s Plan Bill’s TOTAL COST = \$ 22,110,000 TOTAL REVENUE = \$ 57,425,000 PROFIT = \$ 35,315,000 Answers Answers Which of the 3 options maximizes Which profit – Sandra’s, Bill’s or no promotion? profit Bill’s plan is the most profitable PRO FIT (O utsourcing = \$18/unit) \$35, 315 \$35, 500 Profit \$35, 000 \$34, 500 \$34, 000 \$34, 100 \$33, 640 \$33, 500 \$33, 000 \$32, 500 B as e Cas e S andra's plan Opti ons B ill's plan Answers Answers If the subcontracting cost rises to If subcontracting cost \$22/unit, does this change the decision \$22/unit does change when the discount is \$5? when No – Bill’s plan remains the best option PRO FIT (O utsourcing = \$22/unit) \$31, 000 \$30, 735 P o it rf \$30, 500 \$30, 000 \$29, 560 \$29, 760 \$29, 500 \$29, 000 \$28, 500 B as e Cas e S andra's plan Opti ons B ill's plan Answers Answers How does the answer change if \$10 How discount is needed to achieve the discount is impact of \$5 discount? impact Base Case with no promotio...
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## This document was uploaded on 03/27/2014.

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