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Stitchy Inc has expanded their product line to include dresses, which they sell for $40/each. Each dress requires $12 of fabric, $15 of direct labor

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Stitchy Inc has expanded their product line to include dresses, which they sell for $40/each. Each dress requires $12 of fabric, $15 of direct labor and $2 of variable overhead. Total fixed overhead is $100. Stitchy makes 20 dresses per period. Stitchy's selling costs are $1 per dress and $60 per month. What are Stitchy's per unit and total sales dollars and expenses for the period Product Plain Dresses Cost Information Per Unit Total Sales Direct materials Direct labor Variable OH Fixed OH Total cost Variable selling expense Fixed selling expense Stitchy would like to add pockets to their dresses. They believe they could sell a dress with pockets for $50/each. Adding a pocket would require $2 of fabric. 56 of direct labor and $1 of variable overhead. Stitchy will need to acquire a new "pocket machine" for $2,000, which will be depreciated over 10 periods, at which time the value of the machine will be so Stitchy estimates that they can sell 10 pocket dresses per period, In addition to the 20 plain dresses and that they have the capocity to do so. Stitchy's variable selling costs are still 1 per dress. No additional fixed selling costs will be incurred. Incremental cost Direct materials Direct labor Variable OH Fixed OH Details of new machine Incremental Benefit of processing further incremental Revenue Incremental Cost: DM DL Var OH Fixed OH Var Selling Inmental Costs Fixed selling expense Stitchy would like to add pockets to their dresses. They believe they could sell a dress with pockets for $50/each. Adding a pocket would require $2 of fabric, $6 of direct labor and $1 of variable overhead. Stitchy will need to acquire a new "pocket machine" for $2,000, which will be depreciated over 10 periods, at which time the value of the machine will be $0. Stitchy estimates that they can sell 10 pocket dresses per period, in addition to the 20 plain dresses and that they have the capacity to do so. Stitchy's variable selling costs are still $1 per dress. No additional fixed selling costs will be incurred. Incremental cost Direct materials Direct labor Variable OH Fixed OH Details of new machine Incremental Benefit of processing further Incremental Revenue Incremental Cost: DM DL Var OM Fixed OH Var Selling Incremental Costs Incremental Benefit of processing further Stitch's Inc has decided to sell we products, face masks and plaindrews with no pockets Use the price and cont Information from the previous pages) Stitchy estimates market demand such that they can tell 300 face masks and to dress Stitchy has identified their sewing machine station as a resource constant The Sewing Maching station can operate for 20 hours per period One face mask requires sewing maching how One dress requires 3 sewing maching hours Stitchy wishes to maximize profits Face Masks Product Selling Price per Unit Vanable costs perut Contribution Margn perut Sewing Machine Hours per un Contribution Margin per Machine How How many face masks should stitchy male! How mandrelses should seachy mate? How many Sewing Machine Hour witchy use on face masks How many Sewing Maching Hours will stitch use on dresses

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