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Business, 03.07.2020 22:01 kalbaugh

Olympic Bike is introducing two new lightweight bicycle frames, the Deluxe and the Professional, to be made from special aluminum and steel alloys. The anticipated unit profits are $10 for the Deluxe and $15 for the Professional. A supplier delivers 100 pounds of the aluminum alloy and 80 pounds of the steel alloy weekly. Aluminum Alloy Stell Alloy
Delux 2 3
Professional 4 2

Using Sensitivity analysis, answer following questions:

a. How many Deluxe and Professional frames should Olympic produce each week?
b. Suppose the profit on deluxe frames is increased to $20. Is the above solution still optimal? What is the value of the objective function when this unit profit is increased to $20?
c. If the unit profit on deluxe frames were $6 instead of $10, would the optimal solution change?

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