Consider the Spreadsheet for Stone Age Surfboards Provided Below -What Is the Total Number of Hours Used for Fabrication

question 61

Multiple Choice

Consider the spreadsheet for Stone Age Surfboards provided below. Use this data to answer the following questions) , 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. $\begin{array}{|l|c|c|c|c|} \hline & \text { A } & \text { B } & \text { C } & \text { D } \\\hline 1 & \text { Stone Age Surfboards } & & & \\\hline 2 & & & & \\\hline 3 & \text { Data } & & & \\\hline 4 & &{\text { Product }} & \\\hline 5 & \text { Department } & \text { Graystone } & \text { Lava } & \text { Limitation hours) } \\\hline 6 & \text { Fabrication } & 2.5 & 4.2 & 74 \\\hline 7 & \text { Finishing } & 2 & 3.6 & 30 \\\hline 8\\\hline 9 & \text { Profit/Unit } & \$ 40.00 & \$ 60.00 \\\hline 10 & & & \\\hline 11 & & & \\\hline 12 & \text { Model } & & \\\hline 13 & & \text { Graystone } & \text { Lava } \\\hline 14 & \text { Quantity Produced } & & & \text { Hours Used } \\\hline 15 & \text { Fabrication } & & & \\\hline 16 & \text { Finishing } & & & \\\hline 17 & & & & \\\hline 18 & & & & \text { Excess Lava } \\\hline 19 & \text { Market Mixture } & & & \\\hline 20 & & & & \\\hline 21 & & & & \text { Total Profit } \\\hline 22 & \text { Profit Contribution } & & & \\\hline\end{array}$
-What is the total number of hours used for fabrication?

• A) 54.5
• B) 30.0
• C) 35.5
• D) 43.8

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Definitions:

Net Operating Income

A metric assessing a corporation's earnings from its primary operations, before considering reductions for interest and taxes.

Contribution Margin Ratio

The percentage of each sales dollar that remains after variable costs are subtracted, indicating how much contributes towards fixed costs and profit.

Target Profit

The desired amount of net income a company aims to achieve for a certain period as part of its financial and strategic planning.

Monthly Fixed Expense

Costs that do not vary with the level of production or sales in a given period, such as rent or salaries, accruing on a monthly basis.