Question

Spencer Furniture manufactures two different types of china cabinets: a French Provincial model and a Danish Modern model. Each cabinet produced must go through three departments: carpentry, painting, and finishing. These departments have 360 hours, 200 hours, and 125 hours of labor available each week. The firm has a contract with a distributor to produce a minimum of 300 of each cabinet per week (or 60 cabinets per day). An analyst had been consulted to determine a product mix to maximize his daily revenue. The following sensitivity report was generated during the analysis:

		Final	Shadow	Constraint	Allowable	Allowable
Cell	Name	Value	Price	R.H. Side	Increase	Decrease
$E$9	Carpentry: LHS Value	360	9.50	360	33.333333	60
$E$10	Painting: LHS Value	185	0	200	1E+30	20
$E$11	Finishing: LHS Value	112.5	0	125	1E+30	12.5
$E$12	Contract French: LHS Value	60	-10	60	20	33.333333
$E$13	Contract Danish: LHS Value	90	0	60	30	1E+30

Suppose 32 additional hours become available in the carpentry department. How much additional profit can be generated as a result of these additional hours?

Consult the sensitivity report to determine the answer. Enter the exact answer.

Answer 1