Based on the following sensitivity report, what would be the impact of changing the objective function coefficient for Product 1 to 18 and changing the objective function coefficient for Product 3 to 13? Variable Cells Cell $B$2 $B$3 $B$4 Constraints Cell $H$9 SH$10 SH$11 Name Product 1 Product 2 Product 3 Name Resource_A Resource_B Resource C Applying the 100% rule, Final Value e 175 0 Final Value 0 525 700 Reduced Cost -2 0 -1.5 Shadow Price 0 0 1.75 Objective Coefficient Constraint R.H. Side 13 14 10 100 800 700 Allowable Increase 3 1E+30 Allowable Increase 5 1E+30 1E+30 366.6666667 Allowable Decrease 1E+30 9 1E+30 Allowable Decrease 100 275 700 because the total change in the objective function coefficients 100%

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 4E: Using the data in E4-2 and spreadsheet software, determine: The variable cost per unit, the total...
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Based on the following sensitivity report, what would be the impact of changing the objective function coefficient for Product 1 to 18
and changing the objective function coefficient for Product_3 to 13?
Variable Cells
Cell
$B$2
$B$3
$B$4
Constraints
Cell
$H$9
$H$10
$H$11
Name
Product 1
Product 2
Product 3
Name
Resource A
Resource_B
Resource C
Applying the 100% rule,
Final
Value
0
175
Final
Value
1
0
525
700
Reduced Cost
-2
0
-1.5
Shadow
Price
0
1.75
Objective
Coefficient
Constraint
R.H.Side
13
14
10
HELSI
100
800
700
Allowable
Increase
3
1E+30
5
Allowable
Increase
1E+30
1E+30
366.6666667
Allowable
Decrease
1E+30
9
1E+30
Allowable
Decrease
100
275
700
because the total change in the objective function coefficients
100%.
Transcribed Image Text:Based on the following sensitivity report, what would be the impact of changing the objective function coefficient for Product 1 to 18 and changing the objective function coefficient for Product_3 to 13? Variable Cells Cell $B$2 $B$3 $B$4 Constraints Cell $H$9 $H$10 $H$11 Name Product 1 Product 2 Product 3 Name Resource A Resource_B Resource C Applying the 100% rule, Final Value 0 175 Final Value 1 0 525 700 Reduced Cost -2 0 -1.5 Shadow Price 0 1.75 Objective Coefficient Constraint R.H.Side 13 14 10 HELSI 100 800 700 Allowable Increase 3 1E+30 5 Allowable Increase 1E+30 1E+30 366.6666667 Allowable Decrease 1E+30 9 1E+30 Allowable Decrease 100 275 700 because the total change in the objective function coefficients 100%.
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