Question

In: Advanced Math

Q/A manufacturer of outdoor clothing makes wax jackets and trousers. Each jacket requires 1 hour to...

Q/A manufacturer of outdoor clothing makes wax jackets and trousers. Each jacket requires 1 hour to make, whereas each pair of trousers takes 40 minutes. The materials for a jacket cost $32 and those for a pair of trousers cost $40. The company can devote only 34 hours per week to the production of jackets and trousers, and the firm’s total weekly cost for materials must not exceed $1200. The company sells the jackets at a profit of $12 each and the trousers at a profit of $14 per pair. Market research indicates that the firm can sell all of the jackets that are produced, but that it can sell at most half as many pairs of trousers as jackets

.a-Due to the changes in demand, the company has to change its profit margin on a pair of trousers. Assuming that the profit margin on a jacket remains at $12 and the manufacturing constraints are unchanged, find the minimum and maximum profit margins on a pair of trousers which the company can allow before it should change its strategy for optimum output.

Solutions

Expert Solution

Colby Messinger answered 3 years ago
Next > < Previous

Related Solutions

Q- A manufacturer of outdoor clothing makes wax jackets and trousers. Each jacket requires 1 hour...
Q- A manufacturer of outdoor clothing makes wax jackets and trousers. Each jacket requires 1 hour to make, whereas each pair of trousers takes 40 minutes. The materials for a jacket cost $32 and those for a pair of trousers cost $40. The company can devote only 34 hours per week to the production of jackets and trousers, and the firm’s total weekly cost for materials must not exceed $1200. The company sells the jackets at a profit of $12...
A small business enterprise makes dresses and trousers. To make a dress requires 12 hour of...
A small business enterprise makes dresses and trousers. To make a dress requires 12 hour of cutting and 20 minutes of stitching. To make trousers requires 15 minutes of cutting and 12   hour of stitching. The profit on a dress is N$40 and on a pair of trousers N$50. The business operates for a maximum of 8 hours per day. Determine how many dresses and trousers should be made to maximize the profit and what the maximum profit is?       
Smokey and the Bandit produces outdoor activity clothing. The product line consists of pants, jackets, tops,...
Smokey and the Bandit produces outdoor activity clothing. The product line consists of pants, jackets, tops, and accessories. Data has been collected related to direct materials and direct labor for the four product lines. Smokey and the Bandit has also collected information on four possible cost drivers (units, batches, machine hours, labor hours). All this information is listed below. Construct a spreadsheet that will allocate overhead for each of these alternative drivers and will calculate the total per unit cost...
Smokey and the Bandit produces outdoor activity clothing. The product line consists of pants, jackets, tops,...
Smokey and the Bandit produces outdoor activity clothing. The product line consists of pants, jackets, tops, and accessories. Data has been collected related to direct materials and direct labor for the four product lines. Smokey and the Bandit has also collected information on four possible cost drivers (units, batches, machine hours, labor hours). All this information is listed below. Construct a spreadsheet that will allocate overhead for each of these alternative drivers and will calculate the total per unit cost...
Values Rule at Patagonia Patagonia is a California-based company that makes clothing and gear for outdoor...
Values Rule at Patagonia Patagonia is a California-based company that makes clothing and gear for outdoor sports like hiking and climbing. It has been called “The Coolest Company on the Planet” and it has a consistent track record of being voted one of the best companies to work for. Patagonia employees are among some of the most passionate and long serving in the industry. In fact, with an annual turnover rate of only 4 percent, so few people leave the...
1.   Ozark Outdoors is a manufacturer of outdoor items. The company is considering the possibility of...
1.   Ozark Outdoors is a manufacturer of outdoor items. The company is considering the possibility of offering a new sleeping bag that would sell for $125 each. Cost to manufacture these sleeping bags includes $35 in materials and $25 in direct labor for each sleeping bag. Variable manufacturing cost is $15. In order to manufacture these sleeping bags, the company would need to incur $120,000 in fixed costs for new equipment. Required: Compute the unit contribution margin. Compute the break-even...
Man's Clothing is a manufacturer of designer suits. For June 2016, each suit is budgeted to...
Man's Clothing is a manufacturer of designer suits. For June 2016, each suit is budgeted to take 3 ​labor-hours. The budgeted number of suits to be manufactured in June 2016 is 1,160. Man's Clothing allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing​ labor-hours per suit. Data pertaining to fixed manufacturing overhead costs for June 2016 are​ budgeted, $52,200​, and​ actual, $63,870. In June 2016 there were 1,200 suits started and completed. There were no beginning or ending...
1. Ellen Lee, human resource manager of High Fashion Clothing Company, a manufacturer of women’s clothing...
1. Ellen Lee, human resource manager of High Fashion Clothing Company, a manufacturer of women’s clothing and accessories, had just returned from a management development seminar on work motivation. She felt that the company could immediately make use some of the theories she learnt to enhance the workers’ productivity. She was able to convince the executive committee of the company to launch a “high pay reward scheme” – giving extra bonus to those hard working staff members. After the program...
Slacker Slacks Inc. (SSI) is a high-end clothing manufacturer. SSI makes Slacks® and Sleeks®. As part...
Slacker Slacks Inc. (SSI) is a high-end clothing manufacturer. SSI makes Slacks® and Sleeks®. As part of a process improvement initiative, SSI management decided to transition from a traditional single-driver overhead costing system based on direct labor cost (estimated at $60,000) to an activity-based costing system. In doing so, SSI will trace direct materials and direct labor directly to products while allocating other costs based on activities. Cost Object Estimated Cost Activity Driver Estimated Activity Machine Setup $360,000 Setups 400...
BatCo makes metal baseball bats. Each bat requires 2.00 kg of aluminum at $16 per kg and 0.35 direct labor hours at $18 per hour.
  BatCo makes metal baseball bats. Each bat requires 2.00 kg of aluminum at $16 per kg and 0.35 direct labor hours at $18 per hour. Overhead is assigned at the rate of $32 per direct labor hour. QS 23-5 Standard cost card LO C1 What amounts would appear on a standard cost card for BatCo?       Qty per Unit     Cost per Input Std. Cost per Unit Direct materials           Direct labor...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT