Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

A small company manufacturers of two types of office chairs, the swivel and no-swivel models. The manufacturing process consists of two principal departments: fabrication and

A small company manufacturers of two types of office chairs, the swivel and no-swivel models. The manufacturing process consists of two principal departments: fabrication and finishing. The fabrication department has 24 skilled workers, each of whom works 8 hours per day. The finishing department has 6 workers, who also work a 8-hour shift. A swivel type requires 9 labor hours in the fabricating department and 2 labor hours in finishing. The no-swivel model requires 12 labor hours in fabricating and 3 labor hours in finishing. The company makes a net profit of $235 on the swivel model, and $320 on the no-swivel model. The company anticipates selling at least twice as many of the swivel models as no- swivel models. The company will use linear programming to determine how many of each model should be produced on daily basis in order to maximize its net profit.

Suppose that an additional skilled worker is added to the fabrication department. How do you expect this additional resource to affect the optimal profit?

a. The optimal profit will neither increase nor decrease.

b. The optimal profit will increase by about $210.

c. The optimal profit will increase by about $450.

d. It's not known how the optimal profit will change.

The optimal profit will increase by about $115.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Contemporary Approach

Authors: David Haddock, John Price, Michael Farina

3rd edition

77639731, 978-0077639730

Students also viewed these Accounting questions