Use the Table Below to Answer the Following Question(s) Use a Linear Optimization Model Based on the Data to Luthiers

question 11

Multiple Choice

Use the table below to answer the following question(s) .
Pickson Luthiers Corporation makes four models of electric guitars, ScarCT, Dela Mort, Warax, and Invazen. Each guitar must flow through five departments, assembly, painting, sound testing, inspection, and packaging. The table below shows the relevant data. Production rates are shown in units/hour. (ScarCT is assembled elsewhere) . Pickson wants to determine how many guitars to make to maximize monthly profit. $\begin{array}{|l|l|l|l|l|l|}\hline \begin{array}{l}\text { Pickson Luthiers } \\\text { Corporation }\end{array} & & & & & \\\hline & & & & & \\\hline \text { Data } & & & & & \\\hline \text { Guitar Model } & \begin{array}{l}\text { Selling } \\\text { price/Unit }\end{array} & \begin{array}{l}\text { Variable } \\\text { cost/Unit }\end{array} & \text { Min Sales } & \text { Max Sales } \\\hline \text { ScarCT } & 750.00 & 660.00 & 0 & 2500 \\\hline \text { Dela Mort } & 788.00 & 680.00 & 0 & 2000 \\\hline \text { Warax } & 800.00 & 700.00 & 100 & 1000 \\\hline \text { Invazen } & 850.00 & 800.00 & 80 & 500 \\ \hline & & & & \\\hline \begin{array}{l}\text { Production rates } \\\text { (units/hour) }\end{array} & \text { ScarCT } & \text { Dela Mort } & \text { Warax } & \text { Invazen } & \text { Hours } \\&&&&&\text { Available } \\\hline \text { Assembly } & - & 35 & 25 & 20 & 220 \\\hline \text { Painting } & 35 & 20 & 15 & 10 & 220 \\\hline \text { Sound Testing } & 20 & 10 & 20 & 18 & 220 \\\hline \text { Inspection } & 10 & 12 & 8 & 5 & 220 \\\hline \text { Packaging } & 9 & 10 & 5 & 8 & 220 \\\hline\end{array}$ Use a linear optimization model based on the data to answer the following question.
-According to the linear optimization model, which of the following departments uses all the time that it is allocated to finish its job?

• A) assembly
• B) painting
• C) inspection
• D) packaging

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Definitions:

Weighted-Average Method

An inventory costing method that assigns cost based on the average cost of goods available for sale during the period.

FIFO Method

An inventory valuation method that assumes the first items placed into inventory are the first sold.

FIFO Method

An inventory valuation method where the oldest inventory items are recorded as sold first, leaving the newest items in inventory.

Conversion Cost

Combined costs of direct labor and manufacturing overheads incurred to convert raw materials into finished goods.