Consider the Spreadsheet for Stone Age Surfboards Provided Below

question 19

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.

-Due to decreasing profits, if the production of Graystone surfboards is stopped, compute the total profit the firm can earn.

• A)$ 521.74
• B)$ 489.13
• C)$ 423.91
• D)$ 456.52

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Definitions:

Agency Problem

A conflict of interest arising between principals (owners/shareholders) and agents (company executives/managers), where the agent may make decisions that benefit themselves at the expense of the principals.

Partnership Agreement

A legal document that outlines the rights, responsibilities, and profit and loss distribution among partners in a business partnership.

Corporate Officer

An executive or high-ranking official within a corporation, often with legal responsibilities.

Corporate Treasurer

A senior executive responsible for managing the company’s investments, capital structure, risk management, and liquidity, including handling corporate financing activities.