Question
Trailblazers produces two types of hiking boots: the men's boot and the women's boot. The two types of boots are similar, except that the women's
Trailblazers produces two types of hiking boots: the men's boot and the women's boot. The two types of boots are similar, except that the women's boots are more stylish. Both types are made with the same machines. It takes 15 minutes of machine time to produce one pair of men's boots, whereas it takes 30 minutes of machine time to produce one pair of women's boots. The difference in production time results mainly from the different materials used in construction. The relevant data concerning the two types of boots are as follows:
Men's | Women's | |||||
Sales price (per pair) | $36 | $41 | ||||
Less: | ||||||
Direct materials | 10 | 13 | ||||
Direct labor | 4 | 4 | ||||
Variable overhead | 8 | 10 | ||||
Contribution margin | $14 | $14 | ||||
Required machine time | hour | hour |
A. If the total machine time available is 640 hours per month and the demand for each type of boot is 1,500 pairs per month, how many of each type should be produced to maximize profit? (Round your answer to the nearest pair.)
Womens?
Mens?
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