Read Case 13.1 and C13_01.xls file

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

True

False

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

True

False

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

True

False

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

True

False

helby Shelving is a small company that The file C13 01l.xlsx contains relevant data for manufactures two types of shelves for grocery stores. Model S is the standard model; model LX is a heavy-duty version. Shelves are manufactured in three major steps: stamping, forming, and assembly. In the stamping stage, a large machine is used to stamp (i.e., cut) standard sheets of metal into appropriate sizes. In the forming stage, another machine bends the metal into shape. Assembly involves joining the parts with a combination of soldering and riveting. Sh stamping and forming machines work on both models of shelves. Separate assembly departments are used for the final stage of production Shelby. (See Figure 13.33.) The hours required on each machine for each unit of product are shown in the range B5:C6 of the Accounting Data sheet. For example, the production of one model S shelf requires 0.25 hour on the forming machine. Both the stamping and forming machines can operate for 800 hours each month. The model S assembly department has a monthly capacity of 1900 units. The model LX assembly department has a monthly capacity of only 1400 units. Currently Shelby is producing and selling 400 units of model S and 1400 units of model LX per month elby's helby Shelving is a small company that The file C13 01l.xlsx contains relevant data for manufactures two types of shelves for grocery stores. Model S is the standard model; model LX is a heavy-duty version. Shelves are manufactured in three major steps: stamping, forming, and assembly. In the stamping stage, a large machine is used to stamp (i.e., cut) standard sheets of metal into appropriate sizes. In the forming stage, another machine bends the metal into shape. Assembly involves joining the parts with a combination of soldering and riveting. Sh stamping and forming machines work on both models of shelves. Separate assembly departments are used for the final stage of production Shelby. (See Figure 13.33.) The hours required on each machine for each unit of product are shown in the range B5:C6 of the Accounting Data sheet. For example, the production of one model S shelf requires 0.25 hour on the forming machine. Both the stamping and forming machines can operate for 800 hours each month. The model S assembly department has a monthly capacity of 1900 units. The model LX assembly department has a monthly capacity of only 1400 units. Currently Shelby is producing and selling 400 units of model S and 1400 units of model LX per month elby's