make a business model

ROOTS CLOTHING COMPANY The Roots. Clothing Company produces scarf, sweater, shirts and pants. The clothing requirements are: forthe scarf it requires 1.25 square yards of doth, 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 sweaters. $00 shirts and 1200 pants; m #1 50 scarf, 100 sweaters. 1000 shirts and 500 pants; blend! [5 450 scarf. 3'00 sweaters. 3000 shirts and 2500 pants. The company operates at optimum capacity to meet the demands. During each month the following resources are ayailable: month tt 1, 25,000 square yards; month It 1, 5000 square yards; month it 3, lli'I,000 square yards; month It 4, 5,1111 square yards. Cloth that is ayailable 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 514 to make an article of scarf, 5 25 for sweater, 5? for shirt and 5 2B for pants. The cost of each square yard of cloth is 5 5.25 for the 1"ll and 2'\" month. There is an increase of 6% in the cost of cloth for month 3 and 5 iii; for month 4 because of the suppliers' oontrol 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. Cost for resource-sirt materials are computed based on used. Thus, for the rst rrIItIrtth, only the used square yards of doth will be reected in the materials cost and not for the entire 25,000 square yards. This is a common practice in price determination among manufacturers. There are monthly costs which are as follows: rent which is 5 5.000, ofce supplies 5 300, utilities at 5 225 and salary of employees 5 12,000. Selling price per product type is equal to mark up plus average cost. Average Cost is equal to Total Cost per product per month divided by quantity of the product type produced for the month. The mark up are 33%, 5595, 2335 and 25% respectively for scarf, sweater, shirt and pants 1. What is the monthly price for each product? 2. What is the monthly profit for each product? 3. What is the total profit in four months? 4. What is the remaining inventory of cloth per month? 5. Can you forecast a shortage or surplus of cloth for the future given a certain demand and available materials