fixed cost

variable cost
cost of printing
cost of mailing

$ 20,000.00
per catalog
$
0.10
$
0.15

net income generated per catalog

number of catalogs

response rate

7.8
100000

6%

total cost

$ 45,000.00

total income

net profit

45000

$
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%

books ordered
selling price of a book
$
left over books sale price $

4500
30.00
10.00

cost price of a book

21.30

or
d

er
ed

$ (30,850.00)

ks

profit

1000

b
oo

demand

$ (30,850.00)
500
750
1000
1250
1500
1750
2000
2250
2500
2750
3000
3250
3500
3750
4000
4250
4500

Deman
500

750

1000

1250

1500

1750

2000

2250

Demand
2500

2750

3000

3250

3500

3750

4000

4250

4500

month
1
2
3
4
5
6
7
8
9
10
11
12
Expected

price

demand(in 100)
450
45
300
103
440
49
360
86
290
125
450
52
340
87
370
68
500
45
490
44
430
58
390
68
250 133.657352783

Ch
140
120

f(x

100
80

demand(in 100's)

60
40
20
0
250

cost price
profit

300

250
0
0
250
260
270
280
290
300
310
320
330
340
350
360
370
380
390
400
410
420
430
440
450
460
470
480
490

12
10
8
6
4
2
0
200

250

500
983395.8

Chart Title
140
120
f(x) = 466.5101192295 exp( -0.0049106073 x )

100
80

and(in 100's)

60
40
20
0
250

300

350

400

450

500

550

price

Chart Title
12
10
8
6
4
2
0
200

250

300

350

400

450

500

550

Microsoft Excel 15.0 Sensitivity Report

Worksheet: [textbook.xlsx]assembling & testing
Report Created: 12-Oct-16 11:32:29 PM

Variable Cells
Cell
Name
$B$14 laptop produced Basic
$C$14 laptop produced XP

Final Reduced Objective Allowable

Value Cost Coefficient Increase
560
0
80
27.5
1200
33
129 1.0E+030

Constraints
Final Shadow Constraint Allowable
Cell
Name
Value Price R.H. Side Increase
$F$15 total labor hours Assembling 10000
16
10000
200
$G$15 total labor hours testing
2960
0
3000 1.0E+030

Allowable
Decrease
80
33

Allowable
Decrease
2800
40

Basic

XP

Basic
XP

max laptops produced

600
1200
selling price of each laptop $ 300.00 $ 450.00
cost price of each laptop $ 150.00 $ 225.00
laptop produced

560

max hours
labor cost
total labor cost
total labor hour

1200
profit

$ 199,600.00

Assemblingtesting
5
6
10000
11
110000
10000

1
2

3000
15
44400
2960

$12.60

$3.30

DISCOUNT RATE

END OF YEAR

0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

-9.3
1.2
1.32
1.452
1.5972
1.75692
1.932612
2.125873
2.338461
2.221537
2.110461
2.004938
1.904691
1.809456
1.718983
1.633034
1.551382
1.473813
1.400123
1.330117
1.263611

-9.3
1.071429
1.052296
1.033505
1.015049
0.996924
0.979121
0.961637
0.944465
0.801109
0.679512
0.576372
0.488887
0.414681
0.351738
0.298349
0.253064
0.214653
0.182071
0.154436
0.130994
3.300291

12%

FIXED COS
VARIABLE C

50
0.2
SALES NUM

SELLING PR

300

0.5

NET COST
NET REVEN
PROFIT

110
150
40

A) 167

40
100
150
200
250
300
350
400

SHOW DEVELOPMENT COST 5000000

COST OF THEATER PER NIGH
1000
COST OF THEATER PER WEE
7000

NET PROFIT

10000000

SHOWS PER WEEK

8
#WEEKS
58.43852
#SEATS
800
EXPECTED CROWD
80%
TICKET PRICE
50
EXPECTED PROFIT PER TICKET
1.5

M-1
M-2
M-3
M-4
M-5
M-6

MONTHLY DEMAND
10000
15000
30000
35000
25000
10000

PRODUCTION DURING MONTH MAX PRODUCTION INV

MAX INV TOTAL F PC
14751.6007006634
30000
5000
5000 19751.6
12.5
30000
30000
0
5000
30000 12.55
30000
30000
0
5000
30000
12.7
30000
30000
0
5000
30000
12.8
30000
30000
0
5000
30000 12.85
30000
30000
0
5000
30000 12.95

HC
0.625
0.6275
0.635
0.64
0.6425
0.6475

TPC
THC
184395.009
3125
376500
0
381000
0
384000
0
385500
0
388500
0
2099895
3125
TOTAL COST 2103020

QUARTER
DEMAND

1
3000

PRODUCTION
USABLE PRO
LIMIT

2625 2699.999 4820.001

2100 2159.999 3856.001
2700
2700
2700

INV
FINAL INV

1000
900

FINAL # PRO

3000 2159.999

REG COST
OVR CST
INV CST

2
2000

3
4000

0 159.999
0 143.9991
4000

TOTAL
105000 107999.9
108000 320999.9
0
0 127200.1 127200.1
13500
0 2159.986 15659.99
463860

REG COST OVER CST INV CST

40
60
15

Microsoft Excel 15.0 Sensitivity Report

Worksheet: [textbook.xlsx]SONAMA VALLEY WINES
Report Created: 25-Oct-16 9:23:36 AM

Variable Cells
Cell
$E$19
$F$19
$E$20
$F$20

Name
PS Y1
PS Y2
SB Y1
SB Y2

Final
Value
893.8547486
9150.5566497
837.98882682
2353.0002813

Reduced
Cost

Objective Allowable
Coefficient Increase
0
0 18.177458034
0
441.00000E+030
0
01.00000E+030
0
60.5
15.5

Constraints
Cell
$E$22
$E$25
$F$25
$E$25
$F$25
$F$22

Final
Name
Value
total cost Y1
10000
PS Y1
4469.273743
PS Y2
54903.339898
PS Y1
4469.273743
PS Y2
54903.339898
total cost Y2 72681.564246

Shadow
Constraint Allowable
Price
R.H. Side
Increase
46.999899522
100001.00000E+030
0
01.00000E+030
1.5332733813
0 23786.693753
-3.351151481
0 3166.2269129
0
0 23530.002813
7.4982014388
01.00000E+030

Allowable
Decrease
525.8113759
8.9736842105
23.994244604
231.61111111

Allowable
Decrease
10000
3351.9553073
23278.792819
4848.4848485
1.00000E+030
72681.564246

Y1

PS
SB

COSt/bottle
0.8
0.7

0.75
0.85

PS
SB

SELL/bottle
8
7

8.25
7

PS
SB

Marketing/dollar
5
8

PS
SB

for PS

6
10

marketing investment
893.8547 9150.557
837.9888
2353

total cost

Y2

10000 72681.56

demand
PS
4469.274
SB
6703.911
total
11173.18
Upper con 7821.229
lower con 4469.274

54903.34
23530
78433.34
54903.34
31373.34

initial investment
left over investment
investment for Y2

10000
0
72681.56
Profit
Y1
Y2
72681.56
544981

Microsoft Excel 15.0 Sensitivity Report

Worksheet: [textbook.xlsx]Sheet4
Report Created: 25-Oct-16 10:10:01 AM

Variable Cells
Cell
$D$10
$E$10
$D$11
$E$11

Name
gasoline o1
gasoline o2
heating o o1
heating o o2

Final Reduced Objective

Value Cost Coefficient
3000
0
75
2000
0
75
2000
0
60
8000
0
60

Allowable
Increase
175
262.5
25
18.75

Constraints
Final Shadow Constraint Allowable
Cell
Name
Value Price R.H. Side
Increase
$D$5 available o1
5000
-90
0
2500
$E$5 available o2
10000
-52.5
0 6666.6666667
$G$10 gasoline quality obtained 40000
-7.5
0
5000
$G$11 heating o quality obtained 60000
-7.5
0
10000

Allowable
Decrease
25
18.75
175
43.75

Allowable
Decrease
10000
10000
20000
6666.6666667

available
quality

desired quality
40000
60000

SP
75
60

o1
5000
10

gasoline
heating o
total

3000
2000
5000

profit

975000

o2
10000
5

2000
8000
10000

quality obtained
40000
60000

Microsoft Excel 15.0 Sensitivity Report

Worksheet: [textbook.xlsx]Sheet7
Report Created: 25-Oct-16 10:26:08 AM

Variable Cells
Cell
Name
$E$11 produced A
$F$11 produced B
$G$11 produced C

Final
Reduced Objective Allowable
Value
Cost Coefficient Increase
1142.8571429
0
8
128.8
571.42857143
0
54
770
571.42857143
0
6301.00000E+030

Constraints
Cell
$E$13
$F$13
$G$13
$L$11

Final
Value

Name
final pro A
0
final pro B
0
final pro C
571.42857143
total labour hours used
4000

Shadow Constraint Allowable

Price R.H. Side
Increase
-92
0
4000
-330
0
1000
0
0 571.42857143
100
40001.00000E+030

Allowable
Decrease
350
644
577.5

Allowable
Decrease
1600
1333.3333333
1.00000E+030
4000

A
SP
LH

produced
final pro
profit

8
1

70
2

100
3

2000

1000

0
0
70000

1000
0

0
0

total labor hours available

4000

total labour hours used

4000

cap

demand
Y0
Y1
Y2
Y3
Y4
Y5
Y6
Y7
Y8
Y9
Y10
Y11
Y12
Y13
Y14
Y15
Y16
Y17
Y18
Y19
Y20

0
10000
11500
13225
15208.75
17490.06
20113.57
21119.25
22175.21
23283.97
24448.17
25670.58
26954.11
28301.82
29716.91
31202.75
32762.89
34401.03
36121.09
37927.14
39823.5

2000

depreciation
0
0
0
0
0

###

dep per 5 yrs

revenue -maintenance - variable

4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000

rate

before tax after tax

4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000
4000

2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400

10%

cash flow
###
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400
2400

$9,523.46

Microsoft Excel 15.0 Linearity Report

Worksheet: [textbook.xlsx]Sheet2
Report Created: 26-Oct-16 10:03:35 AM

Objective Cell (Min)

Cell
Name Original Value Final Value Linear Function
$P$14 total cost
0
0 No

Variable Cells
Cell
Name Original Value Final Value Occurs Linearly
$F$18 Route 1
0
0 No
$G$18 Route 2
0
0 No
$H$18 Route 3
0
0 No
$I$18 Route 4
0
0 No
$J$18 Route 5
0
0 No
$K$18 Route 6
0
0 No
$L$18 Route 7
0
0 No
$M$18 Route 8
0
0 No
$F$19 Route 1
0
0 No
$G$19 Route 2
0
0 No
$H$19 Route 3
0
0 No
$I$19 Route 4
0
0 No
$J$19 Route 5
0
0 No
$K$19 Route 6
0
0 No
$L$19 Route 7
0
0 No
$M$19 Route 8
0
0 No
$F$20 Route 1
0
0 No
$G$20 Route 2
0
0 No
$H$20 Route 3
0
0 No
$I$20 Route 4
0
0 No
$J$20 Route 5
0
0 No
$K$20 Route 6
0
0 No
$L$20 Route 7
0
0 No
$M$20 Route 8
0
0 No
$F$21 Route 1
0
0 No
$G$21 Route 2
0
0 No
$H$21 Route 3
0
0 No
$I$21 Route 4
0
0 No
$J$21 Route 5
0
0 No
$K$21 Route 6
0
0 No
$L$21 Route 7
0
0 No
$M$21 Route 8
0
0 No
$F$22 Route 1
0
0 No
$G$22 Route 2
0
0 No
$H$22 Route 3
0
0 No
$I$22 Route 4
0
0 No

$J$22
$K$22
$L$22
$M$22
$F$23
$G$23
$H$23
$I$23
$J$23
$K$23
$L$23
$M$23

Route
Route
Route
Route
Route
Route
Route
Route
Route
Route
Route
Route

5
6
7
8
1
2
3
4
5
6
7
8

Constraints
Cell
Name
$F$24 Route 1
$G$24 Route 2
$H$24 Route 3
$I$24 Route 4
$J$24 Route 5
$K$24 Route 6
$L$24 Route 7
$M$24 Route 8

0
0
0
0
0
0
0
0
0
0
0
0

Cell Value

0 No
0 No
0 No
0 No
0 No
0 No
0 No
0 No
0 No
0 No
0 No
0 No

Formula
0 $F$24=$F$26
0 $G$24=$G$26
0 $H$24=$H$26
0 $I$24=$I$26
0 $J$24=$J$26
0 $K$24=$K$26
0 $L$24=$L$26
0 $M$24=$M$26

Linear Function
No
No
No
No
No
No
No
No

Company Route 1
Route 2
Route 3
1 1.0E+016
8200
7800
2
7800
8200 1.0E+016
3 1.0E+016
4800 1.0E+016
4 1.0E+016 1.0E+016
8000
5
7200
6400 1.0E+016
6
7000
5800
7500
`

Company Route 1
Route 2
Route 3
1
0
0
0
2
0
0
0
3
0
0
0
4
0
0
0
5
0
0
0
6
0
0
0
0
0
0
=
=
=
1
1
1

Route 4
Route 5
Route 6
Route 7
Route 8
5400 1.0E+016 1.0E+016
3900 1.0E+016
6300 1.0E+016
3300
4900 1.0E+016
1.0E+016 1.0E+016
4400
5600
3600
5000
6800 1.0E+016
6700
4200
3900
6400
2800 1.0E+016
3000
4500
5600 1.0E+016
6000
4200
total cost

Route 4

Route 5
0
0
0
0
0
0
0

Route 6
0
0
0
0
0
0
0

=
1

Route 7
0
0
0
0
0
0
0

=
1

Route 8
0
0
0
0
0
0
0

=
1

0
0
0
0
0
0
0
=

0 <=
0
0
0
0
0
0

2
2
2
2
2
2
2