Consider the Spreadsheet for Stone Age Surfboards Provided Below -What Is the Value of Slack Obtained from the Answer

question 45

Multiple Choice

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. $\begin{array}{|c|c|c|c|c|}\hline & \text { A } & \text { B } & \text { C } & \text { D } \\\hline 1 & \text { Stone Age Surfboards } & & & \\\hline 2 & & & & \\\hline 3 & \text { Data } & & & \\\hline 4 & &&{\text { Product }} & \\\hline 5 & \text { Department } & \text { Graystone } & \text { Lava } & \text { Limitation (hours) } \\\hline 6 & \text { Fabrication } & 2.5 & 4.2 & 74 \\\hline 7 & \text { Finishing } & 2 & 3.6 & 30 \\\hline 8 & & & & \\\hline 9 & \text { Profit/Unit } & \$ 40.00 & \$ 60.00 & \\\hline 10 & & & \\\hline 11 & & & \\\hline 12 & \text { Model } & & \\\hline 13 & & \text { Graystone } & \text { Lava } \\\hline 14 & \text { QuantityProduced } & & & \text { Hours Used } \\\hline 15 & \text { Fabrication } & & & \\\hline 16 & \text { Finishing } & & & \\\hline 17 & & & & \\\hline 18 & & & & \text { Excess Lava } \\\hline 19 & \text { Market Mixture } & & & \\\hline 20 & & & & \\\hline 21 & & & & \text { Total Profit } \\\hline 22 & \text { ProfitContribution } & & & \\\hline\end{array}$
-What is the value of slack obtained from the answer report?

• A) 46.78
• B) 38.46
• C) 59.24
• D) 23.85

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Definitions:

Game-Theory Models

Mathematical models that analyze situations in which the outcome depends on the choices of multiple agents, each with their own preferences.

Interdependence

A relationship between entities where each is mutually reliant on the other, common in global trade, ecosystems, and social networks.

Kinked Demand Curve

A model used in economic theory that suggests prices have a tendency to remain stable because competitors will more likely match price decreases but not price increases.

Opec

The Organization of Petroleum Exporting Countries, an intergovernmental organization of oil-producing countries that coordinates and unifies petroleum policies.