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

question 4

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 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:

Required Return

The minimum expected return an investor demands for an investment, reflecting its risk level.

Investment Centers

Business units or departments that are directly responsible for generating returns on assets allocated to them.

Controllable Margin

The portion of profit or margin that can be directly influenced by managing costs or expenses within a department or area.

Average Operating Assets

The average value of the assets used in the operation of a business, taken over a specific period, which may be used to evaluate the effectiveness of asset use in generating revenue.