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PROBLEM 2 Ordonez Manufacturing makes Halloween costumes with luminescent decorations so that children can be seen after dark. The company's three top sellers are a
PROBLEM 2 Ordonez Manufacturing makes Halloween costumes with luminescent decorations so that children can be seen after dark. The company's three top sellers are a black cat costume, a witch costume and a jack-o-lantern. Past history Ihows that the company can sell 600 black cat costumes, 700 witch costumes, and 500 jack-o-lantern costumes each week during October. Seven days before Halloween, the company's supplier of luminescent tape had a fire; consequently, could not fill their weekly order for luminescent tape. Ordonez has 4,500 yards of tape in their raw materials inventory. Price and cost information are as follows: Selling Price per unit Variable costs per unit Fixed MOH per unit Yards luminescent tape needed per costume Black Cat $55.00 $35.00 $4.00 Witch $45.00 $24.00 $4.00 Jack-o-lantern $ 60.00 $36.00 $4.00 2 yards 4 yards 3 yards Required: 1) Determine how Ordonez Manufacturing should prioritize production of the Halloween costumes due to the shortage of luminescent tape. Indicate which costume should be made 1st, 2nd and last. Show all calculations! 2) Calculate the number of units of each costume that Ordonez should produce to maximize profits. 3) How much sales revenue will Ordonez generate based your answer to part 2
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