Abbott Suit Corporation (ASC) manufactures BOTH nylon AND cotton jogging suits and this is its cost structure.

Rent on MANUFACTURING facility$30,000

Salaries for CEO, cost accountant, administrative staff$10,000

Depreciation for MANUFACTURING facility$10,000

$50,000

Erin Rogers, UW-M graduate, creates the following standards for the two jogging suits:

Nylon Jogging Suits

Cotton Jogging Suits

Std.qty/suit

Std.price/input

Std.qty/suit

Std.price/input

Direct Materials

2 yds/suit

$10/yd

3 yds/suit

$20/yd

Direct Labor

5 dlh/suit

$10/dlh

4 dlh/suit

$5/dlh

VOH - utilities/grease

2 mh/suit

$10/mh

4 mh/suit

$10/mh

VOH - indirect labor

5 dlh/suit

$10/dlh

4 dlh/suit

$10/dlh

Assume the above standards are 100% accurate and that nylon suits sell for $200, whereas cotton jogging suits sell for $250. Answer the following questions:

1.If there is no capacity issue with the sewing machine, which suit would ASC rather sell, nylon or cotton?