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. the company anticipates selling at least twice as many lava models as graystone models. use the spreadsheet below for stone age surfboards to answer the following question(s) using integer constraints on variables in the optimization models using the standard solver. what is the quantity of lava surfboards produced?

Recently, verizon wireless ran a pricing trial in order to estimate the elasticity of demand for its services. the manager selected three states that were representative of its entire service area and increased prices by 5 percent to customers in those areas. one week later, the number of customers enrolled in verizon's cellular plans declined 4 percent in those states, while enrollments in states where prices were not increased remained flat. the manager used this information to estimate the own-price elasticity of demand and, based on her findings, immediately increased prices in all market areas by 5 percent in an attempt to boost the company's 2016 annual revenues. one year later, the manager was perplexed because verizon's 2016 annual revenues were 10 percent lower than those in 2015"the price increase apparently led to a reduction in the company's revenues. did the manager make an error? yes - the one-week measures show demand is inelastic, so a price increase will decrease revenues. yes - the one-week measures show demand is elastic, so a price increase will reduce revenues. yes - cell phone elasticity is likely much larger in the long-run than the short-run. no - the cell phone market must have changed between 2011 and 2012 for this price increase to lower revenues.

Newton industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit = $42, annual fixed costs = $11,900. the depreciation is $14,700 a year and the tax rate is 34 percent. what effect would an increase of $1 in the selling price have on the operating cash flow?

After the price floor is instituted, the chairman of productions office buys up any barrels of gosum berries that the producers are not able to sell. with the price floor, the producers sell 300 barrels per month to consumers, but the producers, at this high price floor, produce 700 barrels per month. how much producer surplus is created with the price floor? show your calculations.