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Nonuniform Inputs, Weighted Average Carter Inc. had the following production and cost information for its fabrication department during April (with materials added at the beginning
Nonuniform Inputs, Weighted Average Carter Inc. had the following production and cost information for its fabrication department during April (with materials added at the beginning of the fabrication process): Production: Units in process, April 1, 50% complete with respect to conversion 10,000 Units completed 65,200 Units in process, April 30, 60% complete 12,000 Costs: Work in process, April 1: Materials $40,980 Conversion costs 15,600 Total $56,580 Current costs: Materials $125,000 Conversion costs 210,000 Total $335,000 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 50,240 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 Rufus 2. What is the optimal mix of sweatshirt? Optimal Mix Swoop units Rufus units 3. What is the total contribution margin earned for the optimal mix
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