Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Should the last question be 70,000 x 100= 7 million? Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with

Should the last question be 70,000 x 100= 7 million?

image text in transcribed

Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $10 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 30 minutes of machine time. Assume that there are no other constraints. Required: If required, round your answers to the nearest whole number. If an amount is zero, enter "0". 1. What is the contribution margin per hour of machine time for each type of sweatshirt? Contribution Margin Swoop 100 Rufus 30 2. What is the optimal mix of sweatshirt? Optimal Mix 70,000 units Swoop Rufus 0 units 3. What is the total contribution margin earned for the optimal mix? 70,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Return Jahrgang 2018 Magazin Fur Transformation Und Turnaround

Authors: Stefanie Burgmaier, Hans Haarmeyer, Thorsten Garber

3rd Edition

365825601X, 9783658256012

More Books

Students also viewed these Accounting questions

Question

Discuss whether money can buy happiness.

Answered: 1 week ago

Question

Detailed note on the contributions of F.W.Taylor

Answered: 1 week ago