The model was entered into an Excel spreadsheet and the table below shows part of the sensitivity report. Calculate the expected per unit profit for the three services
Variable Cells
Final Reduced
Cell Name Value Gradient
$C$3 P1_ 45.5694 0
$D$3 P2_ 51.5 0
$E$3 P3_ 58.8929 0
Answer: The model provides a solution that calls for only a sale price for P1 of $45.57 - coupled with its price of $2.25 means they make $43.32 per unit of X1. For item X2, the optimal price is $51.50, less the cost of $3, means Zevon makes $48.50 per unit. Finally, X3 will sell for $58.89, less the price of $3.50 means they realize a profit of $55.39 per unit.
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