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Ralston company produce 3 shirts. it only 200 machine hr per day to produce shirt. Fixed cost $75 per day. how many shirts of each
Ralston company produce 3 shirts. it only 200 machine hr per day to produce shirt. Fixed cost $75 per day.
how many shirts of each type should be produced ?
My question is how to get production schedule (shirts) 50 , 10 , 50 ? how is that number come from ? textbook not mention on it
capacity. First caiculate the contribution mar tion margin per machine hour. gin per shirt and then convert this to the contribue Basic $7.50 -$6.00 $1.50 Deluxe Del Super $13 Selling price $9 $7 Variable cost of productiorn ,Contribution margin-pershirt Hours to complete one shirt $2 $6 Contribution margin per machine hour $%2.50 r $2.50 $1 50 $2 50 Demand per day (shirts) 50 50 X 0.6 Production schedule (shirts) 10 50 X Hours to complete one shirt Hours consumed 30 20 150 To maximize profits Ralston should produce the shirt(s) with the highest contributiStep by Step Solution
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