Taco Loco Is Considering a New Addition to Their Menu Variable Cells
Question 17
Question 17
Multiple Choice
Taco Loco is considering a new addition to their menu. They have test marketed a number of possibilities and narrowed them down to three new products, X, Y, and Z. Each of these products is made from a different combination of beef, beans, and cheese, and each product has a price point. Taco Loco feels they can sell an X for $17, a Y for $13, and a Z for $14. The company's management science consultant formulates the following linear programming model for company management. Max R = 14Z + 13Y + 17X subject to: Beef 2Z + 3Y + 4X ? 28 Cheese 9Z + 8Y + 11X ? 80 Beans 4Z + 4Y + 2X ? 68 X,Y,Z ? 0 The sensitivity report from the computer model reads as follows: Variable Cells Cell $C$4 $D$4 $E$4 Name Z Y X Final Value 1.458.360 Reduced Cost 00−0.818 Objective Coefficient 141317 Allowable Increase 0.6380.818 Allowable Decrease 5.330.561E+30
Constraints Cell $F$6 $F$7 $FS8 Name Beef Cheese Beans Final Value 288039.27 Shadow Price 0.451.450 Constraint R.H. Side 288068 Allowable Increase 2461E+30 Allowable Decrease 10.225.3328.73 -The optimal quantity of the three products and resulting revenue for Taco Loco is:
A) 28 beef, 80 cheese, and 39.27 beans for $147.27 B) 10.22 beef, 5.33 cheese, and 28.73 beans for $147.27 C) 1.45 Z, 8.36 Y, and 0 Z for $129.09 D) 14 Z, 13 Y, and 17 X for $9.81
Correct Answer:
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