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Use below information for Questions 7 to 8: zdenses Inc. produces skirts from a special fabric. The fabric is special because of the way it

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Use below information for Questions 7 to 8: zdenses Inc. produces skirts from a special fabric. The fabric is special because of the way it fits many body types. A well-known retail establishment has asked zdenses Inc. to produce 3,050 t-shirts from the same fabric. The factory has unused capacity, so Semahat Hanm, the owner of zdenses Inc., calculates the cost of making a t-shirt from the fabric. Per unit input consumption and cost data for the skirts and t-shirts are as follows: Skirts Fabric in units DL hours Variable MOH costs Fixed MOH costs 6.40 2 $8.50 $15 T-Shirts 3 1.10 $4 $9.50 Unit contribution margin for skirts is $45. Unit fabric cost is $14, DL per hour is $11. Q-7) Suppose zdenses Inc. can acquire all the fabric that it needs. What is the minimum price the company should charge for the t-shirts? Q-8) Now suppose that the fabric is in short supply. Every unit of fabric zdenses Inc. uses to make t-shirts will reduce the skirts that it can make and sell. What is the minimum price the company should charge for the t-shirts? (Assume fractional number of skirts and t-shirts can be produced and sold.)

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