Question

Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Comfy Fit Company...

Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 30 minutes of machine time. Assume that a maximum of 52,030 units of each sweatshirt can be sold.

Required: If required, round your answers to the nearest whole number.

1. What is the contribution margin per hour of machine time for each type of sweatshirt?

Contribution Margin:

Swoop $

Rufus $

2. What is the optimal mix of sweatshirt?

Optimal Mix:

Swoop units

Rufus units

3. What is the total contribution margin earned for the optimal mix? $

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Comfy Fit Company...
Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each...
Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Comfy Fit Company...
Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each...
Determining the Optimal Product Mix with One Constrained Resource Comfy Fit Company manufactures two types of...
Determining the Optimal Product Mix with One Constrained Resource Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 20...
etermining the Optimal Product Mix with One Constrained Resource Comfy Fit Company manufactures two types of...
etermining the Optimal Product Mix with One Constrained Resource Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $11 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 30...
Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Casual Essentials, Inc....
Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Casual Essentials, Inc. manufactures two types of team shirts, the Homerun and the Goalpost, with unit contribution margins of $5 and $15, respectively. Regardless of type, each team shirts must be fed through a stitching machine to affix the appropriate team logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Homerun shirt requires 6 minutes of machine time, and...
Determining the Optimal Product Mix with One Constrained Resource Casual Essentials, Inc. manufactures two types of...
Determining the Optimal Product Mix with One Constrained Resource Casual Essentials, Inc. manufactures two types of team shirts, the Homerun and the Goalpost, with unit contribution margins of $6 and $15, respectively. Regardless of type, each team shirts must be fed through a stitching machine to affix the appropriate team logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Homerun shirt requires 6 minutes of machine time, and each Goalpost shirt requires...
Choosing the Optimal Product Mix with a Constrained Resource and a Demand Constraint Billings Company produces...
Choosing the Optimal Product Mix with a Constrained Resource and a Demand Constraint Billings Company produces two products, Product Reno and Product Tahoe. Each product goes through its own assembly and finishing departments. However, both of them must go through the painting department. The painting department has capacity of 2,460 hours per year. Product Reno has a unit contribution margin of $120 and requires 5 hours of painting department time. Product Tahoe has a unit contribution margin of $75 and...
hoosing the Optimal Product Mix with a Constrained Resource and a Demand Constraint Billings Company produces...
hoosing the Optimal Product Mix with a Constrained Resource and a Demand Constraint Billings Company produces two products, Product Reno and Product Tahoe. Each product goes through its own assembly and finishing departments. However, both of them must go through the painting department. The painting department has capacity of 2,460 hours per year. Product Reno has a unit contribution margin of $120 and requires five hours of painting department time. Product Tahoe has a unit contribution margin of $75 and...
Choosing the Optimal Product Mix with One Constrained Resource Billings Company produces two products, Product Reno...
Choosing the Optimal Product Mix with One Constrained Resource Billings Company produces two products, Product Reno and Product Tahoe. Each product goes through its own assembly and finishing departments. However, both of them must go through the painting department. The painting department has capacity of 1,650 hours per year. Product Reno has a unit contribution margin of $125 and requires five hours of painting department time. Product Tahoe has a unit contribution margin of $52 and requires two hours of...
Constrained Optimization: One Internal Binding Constraint Patz Company produces two types of machine parts: Part A...
Constrained Optimization: One Internal Binding Constraint Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of $300 and $600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. Objective...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT