Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE USE SOLVER TO CREATE ANSWER AND SENSITIVITY REPORT. I have done the work below but having trouble creating the reports. PLEASE HELP TY with

PLEASE USE SOLVER TO CREATE ANSWER AND SENSITIVITY REPORT. I have done the work below but having trouble creating the reports. PLEASE HELP TY with PICS OF WORK

Room & Board

Room & Board produces three products: end tables, sofas, and chairs. These products are processed in five departments: the saw lumber, fabric cutting, sanding, staining, and assembly departments. End tables and chairs are produced from raw lumber only, and the sofas require lumber and fabric. Glue and thread are plentiful and represent a relatively insignificant cost that is included in operating costs. The specific requirements for each product are as follows.

Resource or Activity (quantity available per month)

Required per End Table

Required per Sofa

Required per Chair

Lumber (4,350 board feet)

10 board feet

7.5 board feet

4 board feet

Fabric (2,500 yards)

None

10 yards

None

Saw lumber (280 hours)

30 minutes

30 minutes

30 minutes

Cut fabric (140 hours)

None

24 minutes

None

Sand (280 hours)

30 minutes

6 minutes

30 minutes

Stain (140 hours)

24 minutes

12 minutes

24 minutes

Assemble (700 hours)

60 minutes

90 minutes

30 minutes

The companys direct labor expenses are $75,000 per month for the 1,540 hours of labor, at $48.70 per hour. Lumber costs $10 per board foot and fabric costs $17.50 per yard. Based on current demand, the firm can sell 300 end tables, 180 sofas, and 400 chairs per month. Sales prices are $400 for end tables, $750 for sofas, and $240 for chairs. Assume that labor cost is fixed and that the firm does not plan to hire or fire any employees over the next month. Determine the product mix needed to maximize profit at Room & Board. (10 points)image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Multinational Financial Management

Authors: R M Srivastava

1st Edition

8174466703, 9788174466709

More Books

Students also viewed these Finance questions