Question

Zippy motorcycle manufacturing produces two popular pocket bikes (miniature motorcycles with 49cc engines): the Razor and the Zoomer. In the coming week, the manufacturer wants to produce up to 700 bikes and wants to ensure the number of Razors produced does not exceed the number of Zoomers by more than 300. Each Razor produced and sold results in a profit of $70 while each Zoomer results in a profit of $40. The bikes are identical mechanically and only differ in the appearance of the polymer-based trim around the fuel tank and seat. Each Razor’s trim requires 2 pounds of polymer and 3 hours of production time while each Zoomer requires 1 pound of polymer and 4 hours of production time. Assume that 900 pounds of polymer and 2,400 labor hours are available for production of these items in the coming week

Create a spreadsheet in excel and develop a sensitivity and answer report. Use the sensitivity and answer report to answer the questions below. Do not reuse solver. Please show your work and where you get the information:

1. If there is a decrease in Razors of $35.00, would there be a change in the optimal solution?
2. Assume that there is a disruption in the supply of polymer. Rather than 900 lbs of polymer, assume the organization only received 700 lbs. What will be the optimal profit for Zippy?
3. Assume the organization has decided to develop up to 800 bikes, rather than 700. What will the optimal solution change by?
4. Assume the organization could obtain 300 more labor hours during production. What will be the new level of optimal profit?

Answer 1