Use the Table Below to Answer the Following Question(s)

question 18

Multiple Choice

Use the table below to answer the following question(s) .
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.

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 reduced in order for its production to be feasible?

• A)$30
• B)$90
• C)$60
• D)$120

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Definitions:

Usury Statute

Laws that set the maximum interest rates that can be charged on loans.

Maximum Rate

The highest allowable interest rate or charge on a loan or financial contract as specified by law.

Covenant Not to Compete

A clause in an employment or business agreement that prohibits one party from competing against another for a certain period and in a specific geographic area.

Reasonableness

A standard of fairness, appropriateness, and rationality often used in legal and ethical judgments.