Question

Question 03: Saturn Shoes (Pvt.) Ltd manufacture multi-style fashion boots for the residents of Missouri. Leather is imported for Germany and production is done locally in Kansas City. The following details are relevant for the year ended December 31, 2008:

Details	Multi Jog	Dino Tracker	Classy
Sales price	$37.5	$46.8	$31.88
Material	$13	$17.2	$11.95
Labor	$4	$6	$8
Machine hours	4	5	3
Market demand	800	2,000	450

Only 8,000 machine hours are available in the year.

REQUIRED: Decide upon the design(s) of the Boots the company should manufacture.

Answer 1

Details	Multi Jog	Dino Tracker	Classy
Sales price	$37.5	$46.8	$31.88
Material	$13	$17.2	$11.95
Labor	$4	$6	$8
Profit	20.5	23.6	11.93
Machine hours	4	5	3
Profit per machine hour	5.13	4.72	3.98
Ranking	First	Second	Third

on the basis of profit per machine hour ranking should be given for manufacturing as company should manufacture the design having higher profit with available machine hours

	Multi Jog	Dino Tracker	Classy
Market Demand	800	2000	450
Machine hour	4	5	3
Machine hours required	3200	10000	1350
Machine hours allotted	3200	4800	0

company should manufacture Multi Jog and dino tracker designs of the Boots