SHoW Me How Calculator Print Item Determining the Optimal Product Mix with One C
ID: 2583203 • Letter: S
Question
SHoW Me How Calculator Print Item 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 unt contribution margins of s5 and $15, respectively. Regardless of type, logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. E minutes of machine time, and each Rufus sweatshirt requires 30 minutes of machine time. each sweatshirt must be fed through a stitching machine to affix the appropriate university ach Swoop sweatshirt requires 6 Assume that a maximum of 50,880 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 units Swoop Rufus 3. what is the total contribution margin earned for the optimal mix? unitsExplanation / Answer
2. Swoop, having the higher contribution margin per hour of machine time (scarce resource) is to be given priority in manufacturing.
Hours of machine time available = 7*1000=7000 hours
Hours needed to produce 50880 units of swoop = 50880*6/60 = 5088 hours
Remaining hours of machine time = 7000 - 5088=1912 hours
The units of Rufus that can be produced = 1912*60/30 = 3824 units
3. Total contribution = (50880*5)+(3824*15) = 254400+57360 = $311760
Product Computation contribution Swoop $5/6*60 $50 Rufus $15/30*60 $30Related Questions
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