Product choice with constraints (Appendix 8.1; adapted from CM A exam). Leastan Company manufactures a line of carpeting that includes a commercial carpet and a residential carpet. Both types of carpeting use two grades of fiber — heavy-duty and regular. The mix of the two grades of fiber differs in each type of carpeting, with the commercial grade using a greater amount of heavy-duty fiber.

Leaston will introduce a new line of carpeting in 2 months to replace the current line. The new line cannot use the fiber now in stock. Management wants to exhaust the present stock of regular and heavy-duty fiber during the last month of production.

Data regarding the current line of commercial and residential carpeting follow:

Leaston has 42^000 pounds of heavy-duty fiber and 24.000 pounds of regular fiber in stock. Leaston will throw away fiber not used in the manufacture of the present types of carpeting during the last month of production.
A maximum of 10.500 direct labor hours are available during the month. The labor force can work on either type of carpeting.
Sufficient demand exists for the present line of carpeting so that the firm can sell all quantities produced.

a. Focusing just on fiber availability, calculate the number of rolls of commercial carpet and residential carpet Leastan Company must manufacture during the last month of production to exhaust completely the heavy-duty and regular fiber still in stock.

b. Can Leastan Company manufacture these quantities of commercial and residential carpeting during the last month of production? Explain y our answer.

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Commercial Residential Selling Price per Roll $1.000 $800 Production Specifications per Roll of Carpet Heavy-Duty Fiber Regular Fiber Direct Labor Hours Standard Cost per Roll of Carpet 80 Pounds 20 Pounds 40 Pounds 40 Pounds 15 Hours 15 Hours Heavy-Duty Fiber ($3 per pound) Regular Fiber ($2 per pound) Direct Labor ($10 per dret labor ticar Variable Manufacturing Overhead (60 percent of direct labor cost) $240 $120 40 80 150 150. 90 90 Fixed Manufacturing Overhead (120 percent of direct labor cost). 180 180 Total Standard Cost per Roll $700 $620