Question
The production of skis and snowboards is done in the same manufacturing department. Expected production and sales information for the upcoming fiscal year are as
The production of skis and snowboards is done in the same manufacturing department. Expected production and sales information for the upcoming fiscal year are as follows:
Skis | Snowboard | ||
Demand: | 225,000 units | 275,000 units | |
Sales price: | $140/unit | $150/unit | |
Direct materials: | $55.50/unit | $62.20/unit | |
Direct labor: | $42.90/unit | $37.45/unit | |
Variable manufacturing overhead: | $25.12/unit | $31.40/unit |
Currently, Barnes has 200,000 machine hours available to produce both the skis and snowboards. Each set of skis requires 0.4 machine hours/unit, and each snowboard requires 0.5 machine hours per unit.
Determine the number of skis and the number of snowboards that Barnes should produce for the next fiscal year.
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