QUESTION 7

Consider the spreadsheet for Stone Age Surfboards provided below. Use this data to answer the following question(s), using the Standard Solver. 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.

1 Stone Age Surfboards 3 Data Product 5 Department 6 Fabrication 7 Finishin Graystone 2.5 Lava 4.2 3.6 Limitation (hours) 74 30 S40.00 $60.00 9 Profit/Unit 10 12 Model 13 Graystone Lava antity Produced Hours Used 15 Fabrication 16 Finishin 17 18 19 Market Mixture 20 21 22 Profit Contribution Excess Lava Total Profit Due to decreasing profits, if the production of Graystone surfboards is stopped, compute the total profit the firm can earn $500.00 $521.74 O $489.13 O $423.91