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

question 1

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 Sensitivity Report, by how much should the unit profit on ScarCT be increased in order for its production to be feasible?

• A) $30
• B) $90
• C) $60
• D) $120

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Definitions:

Entitativity

The degree to which a group is perceived as being a coherent and distinct entity, with members sharing common characteristics or a common fate.

Uncertainty-Identity Theory

A theory suggesting that individuals form or join groups in order to reduce uncertainty about themselves and their place in the world.

System Justification Theory

The theory that negative stereotypes get attached to groups partly because they help explain and justify why some individuals are more advantaged than others.

Terror Management Theory

A theory which says that to minimize fear of mortality, humans strive to sustain faith that they are enduringly valued contributors to a meaningful world and therefore transcend their physical death.