Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint

Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 30 minutes of machine time.

Assume that a maximum of 47,830 units of each sweatshirt can be sold.

Required:

If required, round your answers to the nearest whole number.

1. What is the contribution margin per hour of machine time for each type of sweatshirt?

	Contribution Margin
Swoop	$fill in the blank 1
Rufus	$fill in the blank 2

2. What is the optimal mix of sweatshirt?

	Optimal Mix
Swoop	fill in the blank 3 units
Rufus	fill in the blank 4 units

3. What is the total contribution margin earned for the optimal mix? $fill in the blank 5