Question

In: Accounting

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 20 minutes of machine time.

Assume that a maximum of 40,000 units of each sweatshirt can be sold.

Required:

1. What is the contribution margin per hour of machine time for each type of sweatshirt? When computing your answers, round machine time per unit to two decimal places. Round your final answers to the nearest dollar.

Contribution Margin
Swoop $
Rufus $

2. What is the optimal mix of sweatshirts? When computing your answers, round machine time per unit to two decimal places. Round your final answers to the nearest whole unit.

Optimal Mix
Swoop units
Rufus units

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

Solutions

Expert Solution

Formula View :-

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

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 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...
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 $200 and $400, 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 200 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. Objective...
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 $500 and $1,000, 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 500 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. Objective...
Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit...
Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 20 minutes of machine time. Assume that there are no...
The management at Hackney's Southwestern Regional (HSR) are interested in determining the optimal fleet purchase mix...
The management at Hackney's Southwestern Regional (HSR) are interested in determining the optimal fleet purchase mix for the coming year. There are four types of vehicles that can be purchased: standard, intermediate, compact and subcompact. All cars purchased are depreciated and paid off for over a two-year period, after which they are sold in a secondary market. Table 1 presents the wholesale purchase price and revenues (the second year includes the resale value) Type Price ($) 1st yr. ($) 2nd...
PRODUCT MIX DECISION, SINGLE CONSTRAINT Sealing Company manufactures three types of DVD storage units. Each of...
PRODUCT MIX DECISION, SINGLE CONSTRAINT Sealing Company manufactures three types of DVD storage units. Each of the three types requires the use of a special machine that has a total operating capacity of 15,000 hours per year. Information on the three types of storage units is as follows: Basic              Standard        Deluxe Selling price                          $9.00              $30.00            $35.00 Variable cost                         $6.00              $20.00            $10.00 Machine hours required     0.10                  0.50                0.75 Sealing Company's marketing director has assessed demand for the three types...
Product Mix Decision, Single Constraint Behar Company makes three types of stainless steel frying pans. Each...
Product Mix Decision, Single Constraint Behar Company makes three types of stainless steel frying pans. Each of the three types of pans requires the use of a special machine that has total operating capacity of 173,050 hours per year. Information on each of the three products is as follows: Basic Standard Deluxe Selling price $11.68 $17.78 $34.40 Unit variable cost $6.58 $11.72 $16.02 Machine hours required 0.10 0.20 0.50 The marketing manager has determined that the company can sell all...
Recall the Matrix Chain Multiplication Algorithm for determining the optimal parenthesization for a product of matrices....
Recall the Matrix Chain Multiplication Algorithm for determining the optimal parenthesization for a product of matrices. Provide a recursive implementation of the function void print_parenth(Matrix K[], int i, int j); that takes as input the matrix K of k values that are needed to construct the optimal parenthesization for Ai · · · Aj . Assume access to a print function that takes as input a string and prints its value. You may also assume a “+” operation for string...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT