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Only Speeding Ltd is a manufacturing company that specializes in sport clothing and casual wear. Only Speeding has 2,830 machine hours available to produce
Only Speeding Ltd is a manufacturing company that specializes in sport clothing and casual wear. Only Speeding has 2,830 machine hours available to produce either OS Tee or OS Hoodie. The cost accounting department developed the following unit information for each product: Sales price Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Machine time required OS Tee $30.00 7.00 OS Hoodie $55.00 9.50 14.20 15.80 3.50 5.30 6.00 7.00 15 minutes 45 minutes Instructions The operations manager of Only Speeding Ltd wants to know which product to produce in order to maximize the company's income. Taking into consideration the constraints under which the company operates, show which product should be produced and sold. (7 marks)
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