The Company produces a variety of custom-designed clothes for its customers. One favorite item is a jacket, made from either cotton or velvet. The company knows that fabric prices and labor costs are likely to increase in the future.

1) list key variables for the jacket sewing (input, decision variables, output)

2) build a spreadsheet model that enables the company to experiment with the growth rates in fabric and labor costs so that it can be seen, both numerically and graphically, how the costs of the jackets vary in the next few years.

Resource Cottot Velvet Labor 30 30 16 Required per jacket Current unit cost 7.30 euro 4.30 euro 18.50 euro 2.4% 1.7% 1.5% Anticipated annual cost increase