1A The scenario described in Case 13.1 is essentially a cost maximization problem.

True

False

1B [The profit function in this problem is: 1800x + 2100y where x and y denote output for Model LX and Model S respectively.

True

False

1 points

1C Fixed costs in cell G5:G8 are large because each of these costs is a function of output produced.

True

False

1D Given the resurce constraints provided in this problem it is economically possible for the business to produce at full capacity.

True

False

Shelby Shelving Data for Current Production Schedule requirements (hours per unit) Given monthly owerhead cost data Model S Model LX Variable S Variable LX 5 Stamping Model S Model LX $185 Current monthly production4001400 Standard costs of the shelves based on the current production levels 11 Hours spent in departments Model S Model X otals of time spent in departments 8 Stamping Overhead allocation 12.5% 87.5% 1 Unit selling price $1,800 $2.100 capacity