Robin Tires, Inc. makes two types of tires, one for SUVs and the other for Hatchbacks. The firm has the following limits-500 hours for production, 250 hours for packaging, and 150 hours for shipping. The times required per tire type isgiven in the following table.TypeHatchbacktiresISUV Tires 12Cell$B$11$C$11ConstraintsOProductioInHoursCellA. 2001.5PackagingHours1.51ShippingHours1Here's the sensitivity report of this optimization (profit maximization) problem from Excel Solver:Variable Cells0.5NameNumber of tires SUVNumber of tires HatchBacksFinalValueProfit/TirIS12100100eFinalValue350250150$22Reduced ObjectiveCost Coefficient00Shadow ConstraintPrice R.H. SideNameProduction Time used$B$15500250$B$16Packaging Time used$B$17Shipping Time used150 16.66666667If the firm's profit margin for SUV tires changed from $22/tire to $20/tire, what would be the new optimal profit?0416Allowable AllowableIncrease Decrease2OB. The optimization problem needs to be re-solved to get the new optimal profit.O c. 3200O D. 2000O E 34002212 2.66666666741Allowable AllowableIncrease Decrease1E+30501502525

The allowable Increase / Decrease for SUV variable is 2, 4 respectively i.e. the range for SUV…

Answered: If the firm's profit margin for SUV…

Practical Management Science

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Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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If the firm's profit margin for SUV tires changed from $22/tire to $20/tire what would be the new optimal profit?