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Sensitivity Analysis Question The manager of a small breakfast shop is determining how many sausage biscuits and ham biscuits to prepare each morning for customers. Each type of biscuit requires a certain amount of labor time, sausage, ham, and flour. Below is the linear program that defines his problem where x1-# of sausage biscuits to make and x2:# of ham biscuits to make Max Profit-6x1+5x2 Constraints 0.01x1+0.024x2 6 (Labor in terms of hours) 0.1x1< 30 (Pounds of sausage available) 0.15x2< 30 (Pounds of ham available) 0.04x1+0.04x2< 16 (Pounds of flour available) Below is the sensitivity report for this problem. Use this to answer the questions on the next page Microsoft Excel 14.0 Sensitivity Report Worksheet: [Book1]Sheeti Report Created: 9/16/2014 11:57:09 PM $2,190 Total Revenue Variable Cells Final Reduced Objective Allowable Allowable Value Cost Coefficient Increase Decrease Cell SBSI x1-# sausage biscuits to make SBS2 x2-# ham biscuits to make 300 100 1E+30 Constraints Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease Cell SB$6 Labor hours SB$7 Lbs SB$8 Lbs Ham SB$9 Lbs Flour 6 30 30 16 0.6 10 4.285714286 20 1E+30 30 10 16 10 1E+30 125Sensitivity Analysis Question a. What are the managers optimal quantities? Please clearly label your response. b. If the revenue for a ham biscuit increased from $5 to $5.50, would the optimal quantities change? Why or why not? What would be the increase in revenue due to this? c. What is the maximum price that the manager would be willing to pay for one additional pound of sausage and ham? You should provide one maximum price for each product . If the manager had access to additional pounds of flour at no cost, how many pounds should he take if he wants to keep the optimal quantities the same? e. What would be the change in revenue if the manager took the amount of extra flour you specified in part d.? f. Would the optimal quantities change if the revenue per sausage biscuit decreased to $5.70 and the revenue per ham biscuit increased to $5.50? Do not just answer yes or no. Justify your response. g. What would the new revenue be if you made the changes specified in part f.?

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