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The sensitivity range of c₁ (profit per x₁, bowls) in the Beaver Creek Pottery example was 25 ≤ c₁ ≤66.67.

The sensitivity range of c₁ (profit per x₁, bowls) in the Beaver Creek Pottery example was 25 ≤ c₁ ≤66.67.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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The sensitivity range of c₁ (profit per x₁, bowls) in the Beaver Creek Pottery example was 25 ≤ c₁ ≤ 66.67. For whatever reason, it became less profitable to produce bowls, so C₁ decreased from US$40 to US$28. Considering that c₁ is now US$28, what it is the correct statement regarding the current sensitivity range of c₁? The lower limit decreased The upper limit increased The lower limit didn't change There is no upper limit for c1 now None of the above
Transcribed Image Text:The sensitivity range of c₁ (profit per x₁, bowls) in the Beaver Creek Pottery example was 25 ≤ c₁ ≤ 66.67. For whatever reason, it became less profitable to produce bowls, so C₁ decreased from US$40 to US$28. Considering that c₁ is now US$28, what it is the correct statement regarding the current sensitivity range of c₁? The lower limit decreased The upper limit increased The lower limit didn't change There is no upper limit for c1 now None of the above
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