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Fortini Inc. makes two types of popular dresses: Practical and Designer. The following information per unit is available for each dress: Practical Designer Selling price
Fortini Inc. makes two types of popular dresses: Practical and Designer. The following information per unit is available for each dress: Practical Designer Selling price (per dress) $400.00 $600.00 Direct materials ($30/m) 120.00 160.00 Direct labor ($20/hour) 50.00 100.00 Variable manufacturing overhead (per dress) 40.00 80.00 Fixed manufacturing overhead (per dress) 20.00 60.00 Maximum Demand (in dresses) 4,000 2,000 Fortini Inc. can only purchase 28,000m of material, and has 14,000 direct labor hours available for production. Instructions a) How many units of each dress should the company produce in order to maximize profit
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