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Airwalk Inc manufactures two types of summer sandals: bamboo and leather. The costs and financial data for both lines of sandals are shown in
Airwalk Inc manufactures two types of summer sandals: bamboo and leather. The costs and financial data for both lines of sandals are shown in the table below. Costs and CM per unit Bamboo Sales Price Leather $40 $64 $16 $32 Variable costs Number of Units produced within 1 DL hour 3 units 4 units Airwalk sells all sandals that it produces and the fixed costs are the same for the two products. The Airwalk production area has capacity of 400 DL hours per month. Required: 1. What is the constraint? 2. Which type of sandal should be emphasized in Airwalk's product mix? How many units of this sandal you can produce? Show your steps and decisions.
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