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A. DA Denim produces four styles of high-quality jeans that all require use of a fabric treatment machine. Assuming the machine only has 28,000 machine
A. DA Denim produces four styles of high-quality jeans that all require use of a fabric treatment machine. Assuming the machine only has 28,000 machine hours available per month, determine how many units of each style should be produced each month. B. K-Mans Industries manufactures 75,000 digital cameras each year. The company has been producing the lenses internally. However, late last year the company received an offer to purchase the 150,000 lenses the company uses each year for a total contract price of $380,000. When K-Mans manufactures the lenses internally, direct materials cost $1.05 per lens, direct labor is $0.65 per lens, and variable overhead is $0.30 per lens. K-Mans total overhead is $110,000. If the lens were purchased, $28,000 of fixed overhead could be avoided. Should K-Mans purchase or produce the lenses, and what is the total dollar savings associated with the decision
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