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Session-1&2 PC Tech

The PC Tech company is determining production levels for two computer models, Basic and XP, to maximize net profit while adhering to labor hour constraints and sales limits. The report outlines final values, costs, and margins for each model, along with available assembly and testing hours. The company aims to produce 560 Basics and 1200 XPs, with respective selling prices of $300 and $450, while managing component costs and labor requirements.

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sweetydx2026
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© © All Rights Reserved
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0% found this document useful (0 votes)
98 views26 pages

Session-1&2 PC Tech

The PC Tech company is determining production levels for two computer models, Basic and XP, to maximize net profit while adhering to labor hour constraints and sales limits. The report outlines final values, costs, and margins for each model, along with available assembly and testing hours. The company aims to produce 560 Basics and 1200 XPs, with respective selling prices of $300 and $450, while managing component costs and labor requirements.

Uploaded by

sweetydx2026
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Microsoft Excel 15.

0 Sensitivity Report
Worksheet: [Excel Solver Sensitivity.xlsx]Sheet1
Report Created: 11-06-2023 07:52:20

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$H$6 x1 560 0 80 27.5 80
$I$6 x2 1200 0 129 1E+030 33

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$K$9 C1 OBJ 10000 16 10000 200 2800
$K$10 C2 OBJ 2960 0 3000 1E+030 40
$K$11 C3 OBJ 560 0 600 1E+030 40
$K$12 C4 OBJ 1200 33 1200 50 33.333333333
Selling Price 300 450
Cost of
150 225
Components
BASIC XP
x1 x2
No to Produce 560 1200 OBJ
Unit Margin 80 129 199600

Cost per
Hour

11 Assembly Labor Hrs C1 5 6 10000


15 Testing Labor Hrs C2 1 2 2960

C3 1 560
C4 1 1200
The PC Tech company assembles and then tests two models
computers, Basic and XP. For the coming month, the compa
wants to decide how many of each model to assembly and
then test. No computers are in inventory from the previous
month, and because these models are going to be changed
after this month, the company doesn’t want to hold any
inventory after this month.
It believes the most it can sell this month are 600 Basics and
10000
3000
1200 XPs. Each Basic sells for $300 and each XP sells for $45
600 The cost of component parts for a Basic is $150; for an XP it
1200 $225.
Labor is required for assembly and testing. There are at mos
10,000 assembly hours and 3000 testing hours available. Ea
labor hour for assembling costs $11 and each labor hour for
testing costs $15. Each Basic requires five hours for
assembling and one hour for testing, and each XP requires s
hours for assembling and two hours for testing.
PC Tech wants to know how many of each model it should
produce (assemble and test) to maximize its net profit, but i
cannot use more labor hours than are available, and it does
not want to produce more than it can sell.
tests two models of
onth, the company
o assembly and
om the previous
g to be changed
nt to hold any

re 600 Basics and


h XP sells for $450.
$150; for an XP it is

There are at most


ours available. Each
ch labor hour for
ours for
ach XP requires six
ting.
model it should
s net profit, but it
able, and it does
Selling Price 300 450
Cost of
150 225
Components
BASIC XP
x1 x2
No to Produce 560.2 1200 OBJ
Unit Margin 80 129 199616

Cost per
Hour

11 Assembly Labor Hrs C1 5 6 10001


15 Testing Labor Hrs C2 1 2 2960.2

C3 1 560.2
C4 1 1200
The PC Tech company assembles and then tests two models
computers, Basic and XP. For the coming month, the compa
wants to decide how many of each model to assembly and
then test. No computers are in inventory from the previous
month, and because these models are going to be changed
after this month, the company doesn’t want to hold any
inventory after this month.
It believes the most it can sell this month are 600 Basics and
10001
3000
1200 XPs. Each Basic sells for $300 and each XP sells for $45
600 The cost of component parts for a Basic is $150; for an XP it
1200 $225.
Labor is required for assembly and testing. There are at mos
10,000 assembly hours and 3000 testing hours available. Ea
labor hour for assembling costs $11 and each labor hour for
testing costs $15. Each Basic requires five hours for
assembling and one hour for testing, and each XP requires s
hours for assembling and two hours for testing.
PC Tech wants to know how many of each model it should
produce (assemble and test) to maximize its net profit, but i
cannot use more labor hours than are available, and it does
not want to produce more than it can sell.
tests two models of
onth, the company
o assembly and
om the previous
g to be changed
nt to hold any

re 600 Basics and


h XP sells for $450.
$150; for an XP it is

There are at most


ours available. Each
ch labor hour for
ours for
ach XP requires six
ting.
model it should
s net profit, but it
able, and it does
Selling Price 300 450
Cost of
150 225
Components
BASIC XP
x1 x2
No to Produce 558.8 1201 OBJ
Unit Margin 80 129 199633

Cost per
Hour

11 Assembly Labor Hrs C1 5 6 10000


15 Testing Labor Hrs C2 1 2 2960.8

C3 1 558.8
C4 1 1201
The PC Tech company assembles and then tests two models
computers, Basic and XP. For the coming month, the compa
wants to decide how many of each model to assembly and
then test. No computers are in inventory from the previous
month, and because these models are going to be changed
after this month, the company doesn’t want to hold any
inventory after this month.
It believes the most it can sell this month are 600 Basics and
10000
3000
1200 XPs. Each Basic sells for $300 and each XP sells for $45
600 The cost of component parts for a Basic is $150; for an XP it
1201 $225.
Labor is required for assembly and testing. There are at mos
10,000 assembly hours and 3000 testing hours available. Ea
labor hour for assembling costs $11 and each labor hour for
testing costs $15. Each Basic requires five hours for
assembling and one hour for testing, and each XP requires s
hours for assembling and two hours for testing.
PC Tech wants to know how many of each model it should
produce (assemble and test) to maximize its net profit, but i
cannot use more labor hours than are available, and it does
not want to produce more than it can sell.
tests two models of
onth, the company
o assembly and
om the previous
g to be changed
nt to hold any

re 600 Basics and


h XP sells for $450.
$150; for an XP it is

There are at most


ours available. Each
ch labor hour for
ours for
ach XP requires six
ting.
model it should
s net profit, but it
able, and it does
Selling Price 300 450
Cost of
150 225
Components
BASIC XP
x1 x2
No to Produce 560 1200 OBJ
Unit Margin 1 129 155360

Cost per
Hour

11 Assembly Labor Hrs C1 5 6 10000


15 Testing Labor Hrs C2 1 2 2960

C3 1 560
C4 1 1200
The PC Tech company assembles and then tests two models
computers, Basic and XP. For the coming month, the compa
wants to decide how many of each model to assembly and
then test. No computers are in inventory from the previous
month, and because these models are going to be changed
after this month, the company doesn’t want to hold any
inventory after this month.
It believes the most it can sell this month are 600 Basics and
10000
3000
1200 XPs. Each Basic sells for $300 and each XP sells for $45
600 The cost of component parts for a Basic is $150; for an XP it
1200 $225.
Labor is required for assembly and testing. There are at mos
10,000 assembly hours and 3000 testing hours available. Ea
labor hour for assembling costs $11 and each labor hour for
testing costs $15. Each Basic requires five hours for
assembling and one hour for testing, and each XP requires s
hours for assembling and two hours for testing.
PC Tech wants to know how many of each model it should
produce (assemble and test) to maximize its net profit, but i
cannot use more labor hours than are available, and it does
not want to produce more than it can sell.
tests two models of
onth, the company
o assembly and
om the previous
g to be changed
nt to hold any

re 600 Basics and


h XP sells for $450.
$150; for an XP it is

There are at most


ours available. Each
ch labor hour for
ours for
ach XP requires six
ting.
model it should
s net profit, but it
able, and it does
Selling Price 300 450
Cost of
150 225
Components
BASIC XP
x1 x2
No to Produce 560 1200 OBJ
Unit Margin 107 129 214720

Cost per
Hour

11 Assembly Labor Hrs C1 5 6 10000


15 Testing Labor Hrs C2 1 2 2960

C3 1 560
C4 1 1200
The PC Tech company assembles and then tests two models
computers, Basic and XP. For the coming month, the compa
wants to decide how many of each model to assembly and
then test. No computers are in inventory from the previous
month, and because these models are going to be changed
after this month, the company doesn’t want to hold any
inventory after this month.
It believes the most it can sell this month are 600 Basics and
10000
3000
1200 XPs. Each Basic sells for $300 and each XP sells for $45
600 The cost of component parts for a Basic is $150; for an XP it
1200 $225.
Labor is required for assembly and testing. There are at mos
10,000 assembly hours and 3000 testing hours available. Ea
labor hour for assembling costs $11 and each labor hour for
testing costs $15. Each Basic requires five hours for
assembling and one hour for testing, and each XP requires s
hours for assembling and two hours for testing.
PC Tech wants to know how many of each model it should
produce (assemble and test) to maximize its net profit, but i
cannot use more labor hours than are available, and it does
not want to produce more than it can sell.
tests two models of
onth, the company
o assembly and
om the previous
g to be changed
nt to hold any

re 600 Basics and


h XP sells for $450.
$150; for an XP it is

There are at most


ours available. Each
ch labor hour for
ours for
ach XP requires six
ting.
model it should
s net profit, but it
able, and it does
Selling Price 300 450
Cost of
150 225
Components
BASIC XP
x1 x2
No to Produce 560 1200 OBJ
Unit Margin 80 97 161200

Cost per
Hour

11 Assembly Labor Hrs C1 5 6 10000


15 Testing Labor Hrs C2 1 2 2960

C3 1 560
C4 1 1200
The PC Tech company assembles and then tests two models
computers, Basic and XP. For the coming month, the compa
wants to decide how many of each model to assembly and
then test. No computers are in inventory from the previous
month, and because these models are going to be changed
after this month, the company doesn’t want to hold any
inventory after this month.
It believes the most it can sell this month are 600 Basics and
10000
3000
1200 XPs. Each Basic sells for $300 and each XP sells for $45
600 The cost of component parts for a Basic is $150; for an XP it
1200 $225.
Labor is required for assembly and testing. There are at mos
10,000 assembly hours and 3000 testing hours available. Ea
labor hour for assembling costs $11 and each labor hour for
testing costs $15. Each Basic requires five hours for
assembling and one hour for testing, and each XP requires s
hours for assembling and two hours for testing.
PC Tech wants to know how many of each model it should
produce (assemble and test) to maximize its net profit, but i
cannot use more labor hours than are available, and it does
not want to produce more than it can sell.
tests two models of
onth, the company
o assembly and
om the previous
g to be changed
nt to hold any

re 600 Basics and


h XP sells for $450.
$150; for an XP it is

There are at most


ours available. Each
ch labor hour for
ours for
ach XP requires six
ting.
model it should
s net profit, but it
able, and it does
Selling Price 300 450
Cost of
150 225
Components
BASIC XP
x1 x2
No to Produce 560 1200 OBJ
Unit Margin 80 10000 12044800

Cost per
Hour

11 Assembly Labor Hrs C1 5 6 10000


15 Testing Labor Hrs C2 1 2 2960

C3 1 560
C4 1 1200
The PC Tech company assembles and then tests two models
computers, Basic and XP. For the coming month, the compa
wants to decide how many of each model to assembly and
then test. No computers are in inventory from the previous
month, and because these models are going to be changed
after this month, the company doesn’t want to hold any
inventory after this month.
It believes the most it can sell this month are 600 Basics and
10000
3000
1200 XPs. Each Basic sells for $300 and each XP sells for $45
600 The cost of component parts for a Basic is $150; for an XP it
1200 $225.
Labor is required for assembly and testing. There are at mos
10,000 assembly hours and 3000 testing hours available. Ea
labor hour for assembling costs $11 and each labor hour for
testing costs $15. Each Basic requires five hours for
assembling and one hour for testing, and each XP requires s
hours for assembling and two hours for testing.
PC Tech wants to know how many of each model it should
produce (assemble and test) to maximize its net profit, but i
cannot use more labor hours than are available, and it does
not want to produce more than it can sell.
tests two models of
onth, the company
o assembly and
om the previous
g to be changed
nt to hold any

re 600 Basics and


h XP sells for $450.
$150; for an XP it is

There are at most


ours available. Each
ch labor hour for
ours for
ach XP requires six
ting.
model it should
s net profit, but it
able, and it does
Microsoft Excel 15.0 Sensitivity Report
Worksheet: [Excel Solver Sensitivity.xlsx]RHS CHANGE 1
Report Created: 11-06-2023 11:08:25

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$F$6 No to Produce x1 599.8 0 80 27.5 80
$G$6 No to Produce x2 1200 0 129 1E+030 33

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$I$9 C1 OBJ 10199 16 10199 1 2999
$I$10 C2 OBJ 2999.8 0 3000 1E+030 0.2
$I$11 C3 OBJ 599.8 0 600 1E+030 0.2
$I$12 C4 OBJ 1200 33 1200 0.25 0.1666666667
Selling Price 300 450
Cost of
150 225
Components
BASIC XP
x1 x2
No to Produce 599.8 1200 OBJ
Unit Margin 80 129 202784

Cost per
Hour

11 Assembly Labor Hrs C1 5 6 10199


15 Testing Labor Hrs C2 1 2 2999.8

C3 1 599.8
C4 1 1200
The PC Tech company assembles and then tests two models
computers, Basic and XP. For the coming month, the compa
wants to decide how many of each model to assembly and
then test. No computers are in inventory from the previous
month, and because these models are going to be changed
after this month, the company doesn’t want to hold any
inventory after this month.
It believes the most it can sell this month are 600 Basics and
10199
3000
1200 XPs. Each Basic sells for $300 and each XP sells for $45
600 The cost of component parts for a Basic is $150; for an XP it
1200 $225.
Labor is required for assembly and testing. There are at mos
10,000 assembly hours and 3000 testing hours available. Ea
labor hour for assembling costs $11 and each labor hour for
testing costs $15. Each Basic requires five hours for
assembling and one hour for testing, and each XP requires s
hours for assembling and two hours for testing.
PC Tech wants to know how many of each model it should
produce (assemble and test) to maximize its net profit, but i
cannot use more labor hours than are available, and it does
not want to produce more than it can sell.
tests two models of
onth, the company
o assembly and
om the previous
g to be changed
nt to hold any

re 600 Basics and


h XP sells for $450.
$150; for an XP it is

There are at most


ours available. Each
ch labor hour for
ours for
ach XP requires six
ting.
model it should
s net profit, but it
able, and it does

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