Multiple Choice
Consider the scenario given below.Use Excel solver to answer the following question(s) .
Peca Inc.is a small manufacturer of two types of office chairs,the swivel and no-swivel models.The manufacturing process consists of two principal departments: fabrication and finishing.The fabrication department has 24 skilled workers,each of whom works 7 hours per day.The finishing department has 6 workers,who also work a 7-hour shift.A swivel type requires 7 labor hours in the fabricating department and 2 labor hours in finishing.The no-swivel model requires 8 labor hours in fabricating and 3 labor hours in finishing.Peca Inc.makes a net profit of $100 on the swivel model,and $130 on the no-swivel model.The company anticipates selling at least twice as many no-swivel models as swivel models.The company wants to determine how many of each model should be produced on a daily basis to maximize net profit.
-What is the allowable decrease per unit of swivel chair produced?
A) $120.75
B) $42
C) $47.25
D) $13.33
Correct Answer:

Verified
Correct Answer:
Verified
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