Consider the Scenario Given Below

question 64

Multiple Choice

Consider the scenario given below.Use Excel solver to answer the following question(s) .
Peca Inc.is a small manufacturer 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 7 hours per day.The finishing department has 6 workers,who also work a 7-hour shift.A swivel type requires 7 labor hours in the fabricating department and 2 labor hours in finishing.The no-swivel model requires 8 labor hours in fabricating and 3 labor hours in finishing.Peca Inc.makes a net profit of $100 on the swivel model,and $130 on the no-swivel model.The company anticipates selling at least twice as many no-swivel models as swivel models.The company wants to determine how many of each model should be produced on a daily basis to maximize net profit.
-If the limitation in the finishing department is changed to 43 labor hours,the total profit ________.

• A)will decrease by $45
• B)will increase by $5
• C)will decrease by $5
• D)will increase by $45

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Definitions:

Orderly Plan of Disposition

An orderly plan of disposition refers to a strategically organized method for selling off a business's assets, often used in liquidation scenarios.

Express Trusts

Express Trusts are trusts created intentionally by the settlor, typically through a written document, specifying how assets placed into the trust should be managed and distributed.

Inter Vivos Trust

A trust created during the lifetime of the grantor, allowing the grantor to transfer assets before death for the benefit of future beneficiaries.

Duress

Coercing someone into acting against their will by using force, threats, or pressure.