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Caricofe Costumes produces costumes for Fasching, Halloween, Christmas, and many other special occasions. During 2 0 2 3 , the company has had a hard
Caricofe Costumes produces costumes for Fasching, Halloween, Christmas, and many other special occasions. During the company has had a hard time hiring skilled seamstresses and periodically been unable to obtain some of the specialty fabrics and supplies it uses in its costumes. The following per unit data relates to three of the company's costumes. tableMagical Unicorns,Spectacular Robots,Scary ClownsDemandSelling Price,Variable Cost,Seamstress Hours,Luminescent Fabric yardsArtist Hours,Plastic ounces Not only has it been difficult to find skilled seamstresses but one of their seamstresses fell while skiing and is not going to be able to work for the next month. They have determined that they will only have seamstress hours available. Required: If the company had constraints, which product would earn the highest contribution margin per unit? Determine which costume should be given first priority, second priority, and third priority in order to maximize company profits based on the fact that they are going to be short seamstress hours. What is the maximum amount of contribution margin that the company can generate next month given this labor hour shortage? Make sure to clearly identify how many of each product the company should make.
Caricofe Costumes produces costumes for Fasching, Halloween, Christmas, and many other special occasions. During the company has had a hard time hiring skilled seamstresses and periodically been unable to obtain some of the specialty fabrics and supplies it uses in its costumes. The following per unit data relates to three of the company's costumes.
tableMagical Unicorns,Spectacular Robots,Scary ClownsDemandSelling Price,Variable Cost,Seamstress Hours,Luminescent Fabric yardsArtist Hours,Plastic ounces
Not only has it been difficult to find skilled seamstresses but one of their seamstresses fell while skiing and is not going to be able to work for the next month. They have determined that they will only have seamstress hours available.
Required:
If the company had constraints, which product would earn the highest contribution margin per unit?
Determine which costume should be given first priority, second priority, and third priority in order to maximize company profits based on the fact that they are going to be short seamstress hours.
What is the maximum amount of contribution margin that the company can generate next month given this labor hour shortage? Make sure to clearly identify how many of each product the company should make.
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