Consider the portion of the sensitivity analysis report that follows.Decreasing the right-hand side constraint by 1 unit for $I$8 (from 150 to 149)will result in which of the following? $$\begin{array} { | l | l | l | l | l | l | l | }
\hline \text { Cell } & \text { Name } & \begin{array} { l }
\text { Final } \
\text { Value }
\end{array} & \begin{array} { l }
\text { Shadow } \
\text { Price }
\end{array} & \begin{array} { l }
\text { Constraint } \
R \mathrm { H } \text {. Side }
\end{array} & \begin{array} { l }
\text { Allowable } \
\text { Increase }
\end{array} & \begin{array} { l }
\text { Alowable } \
\text { Decrease }
\end{array} \
\hline \$ 1 \$ 7 & \begin{array} { l }

Question

Consider the portion of the sensitivity analysis report that follows.Decreasing the right-hand side constraint by 1 unit for $I$8 (from 150 to 149)will result in which of the following? $$\begin{array} { | l | l | l | l | l | l | l | } 
\hline \text { Cell } & \text { Name } & \begin{array} { l } 
\text { Final } \
\text { Value }
\end{array} & \begin{array} { l } 
\text { Shadow } \
\text { Price }
\end{array} & \begin{array} { l } 
\text { Constraint } \
R \mathrm { H } \text {. Side }
\end{array} & \begin{array} { l } 
\text { Allowable } \
\text { Increase }
\end{array} & \begin{array} { l } 
\text { Alowable } \
\text { Decrease }
\end{array} \
\hline \$ 1 \$ 7 & \begin{array} { l } 
< = \
\text { Usage }
\end{array} & 240 & 0.6 & 240 & 210 & 40 \
\hline \$ 1 \$ 8 & \begin{array} { l } 
< = \
\text { Usage }
\end{array} & 150 & 3.2 & 150 & 30 & 70 \
\hline
\end{array}$$
A)decrease the profit by $0.6
B)increase the profit by $3.2
C)increase the profit by $0.6
D)decrease the profit by $3.2

Quizplus · Accepted Answer

From the shadow price column, we can see that the shadow price for cell $I$8 is $3.2$. This means that for every unit decrease in the RHS constraint for $I$8, the profit will decrease by $3.2$. Therefore, decreasing the RHS constraint by 1 unit will decrease the profit by $3.2. $

Consider the Portion of the Sensitivity Analysis Report That Follows