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

question 43

Multiple Choice

Use the table below to answer the following questions) .
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. $\begin{array} { |l|l|l|l|l|l| } \hline \begin{array} { l } \text {Pickson Luthiers }\\ \text {Corporation }\\\end{array}\\\hline\\\hline \text {Data}\\\hline \text { Guitar Model } & \begin{array}{l}\text { Selling } \\\text { price/Unit }\end{array} & \begin{array}{l}\text { Variable } \\\text { cost/Unit }\end{array} & \text { Min Sales } & \text { Max Sales } \\\hline \text { ScarCT } & 750.00 & 660.00 & 0 & 2500 \\\hline \text { Dela Mort } & 788.00 & 680.00 & 0 & 2000 \\\hline \text { Warax } & 800.00 & 700.00 & 100 & 1000 \\\hline \text { Invazen } & 850.00 & 800.00 & 80 & 500 \\\hline\\\hline \begin{array}{l}\text { Production rates } \\\text { units/hour) }\end{array} & \text { ScarCT } & \text { Dela Mort } & \text { Warax } & \text { Invazen } & \begin{array}{l}\text { Hours } \\\text { Available }\end{array} \\\hline \text { Assembly } & - & 35 & 25 & 20 & 220 \\\hline \text { Painting } & 35 & 20 & 15 & 10 & 220 \\\hline \text { Sound Testing } & 20 & 10 & 20 & 18 & 220 \\\hline \text { Inspection } & 10 & 12 & 8 & 5 & 220 \\\hline \text { Packaging } & 9 & 10 & 5 & 8 & 220\\\hline\end{array}$
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?

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Definitions:

Acid-Test Ratio

is a financial metric that assesses a company's ability to pay off its current liabilities with its most liquid assets, excluding inventory.

Balance Sheet

An accounting document summarizing assets, liabilities, and owners' equity of a business on a specific date.

Sales On Account

Transactions where goods are sold and payment is deferred, allowing the buyer to pay at a later date, typically generating accounts receivable for the seller.

Average Sale Period

The average time it takes for a company to sell its inventory, often used to assess the efficiency of sales operations.