Question
Raintree makes 2 products, rain jackets and rain pants. Each passes through the cutting machine, which is the binding constraint. Rain jackets take 15 minutes
Raintree makes 2 products, rain jackets and rain pants. Each passes through the cutting machine, which is the binding constraint. Rain jackets take 15 minutes on the cutting machine and have a contribution margin per jacket of $16. Rain pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $32. Assume that there are 4,800 hours available on the cutting machine and that the minimum demand for each product is 3,000 units. How many of each product should be made?
A) 600 jackets and 4,200 pants
B) 3,000 jackets and 10,500 pants
C) 3,000 jackets and 3,000 pants
D) 3,600 jackets and 1,200 pants
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