Asked by Chevonne Watson on May 26, 2024
Verified
If the limitation in the finishing department is changed to 43 labor hours,the total profit ________.
A) will decrease by $45
B) will increase by $5
C) will decrease by $5
D) will increase by $45
Total Profit
The overall financial gain achieved from a business activity after subtracting all costs and expenses.
Finishing Department
The final production stage in manufacturing where products undergo finishing processes, such as painting, polishing, or packaging, to prepare them for sale or distribution.
Labor Hours
The total number of work hours spent by employees on a given task or project.
- Determine the impact of altering resource availability on the optimal solution and overall profit.
Verified Answer
DR
Dymond RhodesMay 28, 2024
Final Answer :
D
Explanation :
By changing the limitation in the finishing department to 43 labor hours, we can input this new limit in the solver and obtain the optimal values for the number of swivel and no-swivel models to produce. Upon doing so, we obtain that producing 2.6 swivel models and 5.2 no-swivel models will result in a total profit of $1190, an increase of $45 compared to the previous total profit of $1145. Therefore, the best choice is to produce 2.6 swivel models and 5.2 no-swivel models.
Learning Objectives
- Determine the impact of altering resource availability on the optimal solution and overall profit.