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 per day. 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 fabrication 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. If the unit profit on Graystone surfboards is increased by $10, what is the total profit generated? Round to the nearest cent. Click the icon to view the model. Production Model OA. $554.35 OB. $423.91 A 1 Stone Age Surfboards B C D 2 OC. $521.74 3 Data OD. $489.13 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 $40.00 $60.00 10 11 12 Model 13 14 Quantity Produced Graystone Lava Hours Used 15 Fabrication - x
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 per day. 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 fabrication 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. If the unit profit on Graystone surfboards is increased by $10, what is the total profit generated? Round to the nearest cent. Click the icon to view the model. Production Model OA. $554.35 OB. $423.91 A 1 Stone Age Surfboards B C D 2 OC. $521.74 3 Data OD. $489.13 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 $40.00 $60.00 10 11 12 Model 13 14 Quantity Produced Graystone Lava Hours Used 15 Fabrication - x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 per day. 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 fabrication 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. If the unit profit on
Graystone surfboards is increased by $10, what is the total profit generated? Round to the nearest cent.
Click the icon to view the model.
Production Model
OA. $554.35
OB. $423.91
A
1 Stone Age Surfboards
B
C
D
2
OC. $521.74
3
Data
OD. $489.13
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
$40.00
$60.00
10
11
12 Model
13
14 Quantity Produced
Graystone Lava
Hours Used
15
Fabrication
- x
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