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.
Required:
1. If the unit profit on Graystone surfboards is increased by $10, what is the Allowable Decrease for Lava surfboards?
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.
Required:
1. If the unit profit on Graystone surfboards is increased by $10, what is the Allowable Decrease for Lava surfboards?
1 answer:
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