Exhibit 8.1
The following questions pertain to the problem and spreadsheet below.
A company makes products A and B from 2 resources, labor and material. The company wants to determine the selling price which will maximize profits. A unit of A costs 25 to make and demand is estimated to be 20 − .10 * Price of A. A unit of B costs 18 to make and demand is estimated to be 30 − .07 * Price of B. The utilization of labor and materials and the available quantity of resources is shown in the table. A reasonable price for the products is between 100 and 200. Let X 1 = demand for As and X 2 = demand for Bs.
Let P 1 = price for As and P 2 = price for Bs
-Refer to Exhibit 8.1. What formula is used in cell B9 of the spreadsheet for this problem?
A) =B3*B7+C3*C7
B) =B5*B7+C5*C7
C) =(B5-B4)*B7+(C5-C4)*B7
D) =B3*B7+C3*B7+B4*B7+C4*B7

Question

Exhibit 8.1
The following questions pertain to the problem and spreadsheet below.
A company makes products A and B from 2 resources, labor and material. The company wants to determine the selling price which will maximize profits. A unit of A costs 25 to make and demand is estimated to be 20 − .10 * Price of A. A unit of B costs 18 to make and demand is estimated to be 30 − .07 * Price of B. The utilization of labor and materials and the available quantity of resources is shown in the table. A reasonable price for the products is between 100 and 200.  Let X 1 = demand for As and X 2 = demand for Bs.
Let P 1 = price for As and P 2 = price for Bs 
-Refer to Exhibit 8.1. What formula is used in cell B9 of the spreadsheet for this problem?
A) =B3*B7+C3*C7 
B) =B5*B7+C5*C7 
C) =(B5-B4)*B7+(C5-C4)*B7 
D) =B3*B7+C3*B7+B4*B7+C4*B7

Quizplus · Accepted Answer

The formula in cell B9 is calculating a total by multiplying values in B5 and C5 with B7 and C7, respectively, and summing them.

Exhibit 8.1 The Following Questions Pertain to the Problem and Spreadsheet Below