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Shoe Galaxy manufactures TWO products: Running shoes and Cross Trainer shoes. Pairs of Running Shoes sell for $150 to retailers and the Variable Cost to
Shoe Galaxy manufactures TWO products: Running shoes and Cross Trainer shoes. Pairs of Running Shoes sell for $150 to retailers and the Variable Cost to manufacture one shoe is $30. The Cross Trainers sell for $180 a pair to retailers. There is a Variable Cost of $40 to manufacture one shoe. The current demand from all retailers is a combined 5,000 pairs of shoes per month in any combination. (i) How many pairs of each product should be manufactured to maximize Contribution Margin if the plant capacity is 12,000 shoes per month. (ii) Provide one Qualitative factor that should be taken into consideration that could impact your answer to part (i) above For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)
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