Captain Stubing eyes the sensitivity report for his decision variables and Julie McCoy, Cruise Director, studies it. Her sneeze obscures part of the printout, leaving the captain scratching his head about the values of each of the three variables,
Bar, Food and Excursion. Does he need all three? How would he know simply by reading the remaining legible portion of the report?
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$B$2 Bar 12 0 1500 1560 1E+30
$C$2 Food 12 0 5000 1660 1E+30
$D$2 Excursion 24.24 0 17000 1E+30 3458.33333
Answer: As luck would have it, we know that all three have positive values in the final solution. None of them shows as having a reduced cost, which means that they all must be in the solution.
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Fill in the blank(s) with the appropriate word(s).
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Target return pricing is a variation of break-even pricing
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