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

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