1. Borden RoadMusic is producing CDs for five (5) artists, Sarah D, Tom Boy, UberLyft, Vinny Joe, and Wanda, and X-terra. Borden Road Music makesthe following unit profits on each artist’s CD as follows
Artist | Sarah D | Tom Boy | Uber Lyft | Vinny Joe | Wanda |
Profit/CD | $0.58 | $0.43 | $0.25 | $0.17 | $0.28 |
Each artist needs recording studio time and mastering studiotime. There are 10,000 Minutes of available mastering time and25,000 minutes of available recording time.
Artist | Sarah D | Tom Boy | Uber Lyft | Vinny Joe | Wanda |
Recording/CD | 52 | 48 | 40 | 60 | 75 |
Mastering/CD | 28 | 24 | 18 | 12 | 5 |
Each artists CD must be packaged after production. There is2,000 minutes of packaging time.
Artist | Sarah D | Tom Boy | Uber Lyft | Vinny Joe | Wanda |
Package/CD | 1.5 | 1.25 | 1.0 | 0.75 | 1.5 |
Each artist will need promotion time. There are only 50,000minutes of promotional time available.
Artist | Sarah D | Tom Boy | Uber Lyft | Vinny Joe | Wanda |
Time/CD | 25 | 15 | 10 | 5 | 1 |
Marketing has the following consumer behavior information:
i. There arealready 200 copies of Uber Lyft CDs pre-ordered.
ii. There arealready 100 copies of Vinny Joe CDs pre-ordered.
iii. For every 2 Sarah D CDssold there is a Tom Boy CD sold.
As a quality control measure Wanda CDs cannot exceed half of theother CDs produced.
a. Formulate thestandard form of Borden Road Music’s linear program in the tablebelow.
b. Use excel tosolve the linear program and attach the Solution worksheet, theSensitivity Analysis worksheet.
c. What happensto Borden Road’s profits if they gain 100 minutes of Masteringtime?
Profits: .
d. What happensto Borden Road’s profits if they lose 100 minutes of recordingtime?
Profits: .
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