Stone Age Surfboards is a small manufacturer of two types of popular low-tide surfboards, the...
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Accounting
Stone Age Surfboards is a small manufacturer of two types of popular low-tide surfboards, the Graystone and the Lava models. The manufacturing process consists of two departments: fabrication and finishing. The fabrication department has 8 skilled workers, each of whom works 9.25 hours per day. The finishing department has 5 workers, each of whom works a 6-hour shift. Each pair of Graystone surfboards requires 2.5 labor-hours in the fabrication department and 2 labor-hours in finishing. The Lava model requires 4.2 labor-hours in the fabrication department and 3.6 labor-hours in finishing. The company operates 6 days a week. It makes a per-unit profit of $40 on the Graystone model and $60 on the Lava model. The company anticipates selling at least twice as many Lava models as Graystone models.
1. What is the total profit generated?
2. What is the value of slack obtained from the answer report?
3. What is the Allowable Increase in the finishing hours used?
4. If the unit profit on Graystone surfboards is increased by $10, what is the Allowable Decrease for Lava surfboards?
A
B
C
D
1
Stone Age Surfboards
2
3
Data
4
Product
5
Department
Graystone
Lava
Limitation (hours)
6
Fabrication
2.5
4.2
74
7
Finishing
2
3.6
30
8
9
Profit/Unit
$40
$60
10
11
12
Model
13
Graystone
Lava
14
Quantity Produced
Hours Used
15
Fabrication
16
Finishing
17
18
Excess Lava
19
Market Mixture
20
21
Total Profit
22
Profit Contribution
Answer & Explanation
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