Jones Furniture Company Produces Beds and Desks for College Students $\text { Changing Calls }$

Essay

Jones Furniture Company produces beds and desks for college students.The production process requires carpentry and varnishing.Each bed requires 6 hours of carpentry and 4 hour of varnishing.Each desk requires 4 hours of carpentry and 8 hours of varnishing.There are 36 hours of carpentry time and 40 hours of varnishing time available.Beds generate $30 of profit and desks generate $40 of profit.Demand for desks is limited so at most 8 will be produced.
How much can the price of Desks drop before it is no longer profitable to produce them? Base your response on the following Analytic Solver Platform sensitivity output.
Let ^X₁ ^{= Number of Beds to produce} X₂ = Number of Desks to produce
The LP model for the problem is
MAX: ^{30 X}₁ ^{+ 40 X}₂
Subject to: ^{6 X}₁ ^{+ 4 X}₂ ^{? 36 carpentry)}
4 X₁ + 8 X₂ ? 40 varnishing)X₂ ? 8 demand for X₂)
X₁,X₂ ? 0
$\text { Changing Calls }$
$\begin{array}{rrrrrrr}\text { Cell } & \text { Name } & \begin{array}{r}\text { Final } \\\text { Value }\end{array} & \begin{array}{r}\text { Reduced } \\\text { Cost }\end{array} & \begin{array}{r}\text { Objective } \\\text { Coefficient }\end{array} & \begin{array}{r}\text { Allowable } \\\text { Increase }\end{array} & \begin{array}{r}\text { Allowable } \\\text { Decrease }\end{array} \\\hline \$ B \$ 4 & \text { Number to make: Beds } & 4 & 0 & 30 & 30 & 10 \\\$ C \$ 4 & \text { Number to make: Desks } & 3 & 0 & 40 & 20 & 20\end{array}$

$\text { Coustraints }$

$\begin{array}{rrrrrrr}\text { Cell } & \text { Name } & \begin{array}{r}\text { Final } \\\text { Value }\end{array} & \begin{array}{r}\text { Shadow } \\\text { Price }\end{array} & \begin{array}{r}\text { Constraint } \\\text { R.H. Side }\end{array} & \begin{array}{r}\text { Allowable } \\\text { Increase }\end{array} & \begin{array}{r}\text { Allowable } \\\text { Decrease }\end{array} \\\hline \$ \mathrm{D} \$ 8 & \text { Carpentry Used } & 36 & 2.5 & 36 & 24 & 16 \\\$ \mathrm{D} \$ 9 & \text { Varnishing Used } & 40 & 3.75 & 40 & 26.67 & 16 \\\$ \mathrm{D} \$ 10 & \text { Desk demand Used } & 3 & 0 & 8 & 1 \mathrm{~E}+30 & 5\end{array}$