Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I want to know how can get the selling price. Make a business model from the case below The Roots Clothing Company produces scarf, sweater,

I want to know how can get the selling price. image text in transcribed
Make a business model from the case below The Roots Clothing Company produces scarf, sweater, shirts and pants. The clothing requirements are: for the scarf it requires 1.25 square yards of cloth, 2.4 square yards of cloth for the sweater, 2 square yards of cloth for the shirt and 3 square yards of cloth for the pants. During the next 4 months the following demands for scarf, sweater, shirts and pants must be met (on time): month # 1, 150 scarf, 400 sweaters, 1000 shirts and 1500 pants, month # 2.160 scarf, 300 sweaters, 800 shirts and 1200 pants; month # 3, 50 scarf, 100 sweaters, 1000 shirts and 600 pants; month #4, 450 scarf, 700 sweaters, 3000 shirts and 2500 pants. The company operates at optimum capacity to meet the demands. During each month the following resources are available: month # 1, 50,000 square yards; month # 2, 4,500 square yards, month # 3, 6,000 square yards; month # 4, 3,000 square yards. Cloth that is available during month 1 and is not used can be used during month 2. Same apply to the succeeding months. For labor cost during each month it cost $14 to make an article of scarf, $ 28 for sweater, $7 for shirt and $ 28 for pants. The cost of each square yard of cloth is $ 6.25 for the 1't and 2nd month. There is an increase of 6% in the cost of cloth for month 3 and 4 because of the suppliers' control of the market. It is expected that the supplies of cloth will dwindle or may even hit zero at the end of the year because of the ongoing crisis in the textile industry all over the world In your business model, identify or indicate your answers to the following questions: SHEET 1 1. Find the total cost of satisfying the demand from month 1 to month 4.(3 point) Assuming that the selling price is based on the average cost of producing an article (TC/Q) and the mark up are the following: 38%, 56%, 28% and 75% respectively and selling price is equal to mark up plus average cost. What is the total revenue for the entire 4 months. (3 points) What is the profit for the entire 4 months. (3 points) 2. 3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Sector Accounting And Auditing In EuropeThe Challenge Of Harmonization

Authors: I. Brusca, E. Caperchione, S. Cohen, F Manes Rossi

3rd Edition

1137461330, 9781137461339

More Books

Students also viewed these Accounting questions