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XYZ Co . produces skorts and jumper uniforms for school children. In the process of cutting out the cloth pieces for each product, a certain
XYZ Co produces skorts and jumper uniforms for school children. In the process of cutting out the cloth pieces for each product, a certain amount of scrap cloth is produced. XYZ Co has been selling this cloth scrap to SouthCo for $ per pound. Last year, the company sold lbs of scrap, which would be enough to make teddy bears that the management of XYZ Co is now interesting in producing. Their processes would need some reprogramming, particularly in the cutting and stitching processes, but it would require no additional worker training. However, new packaging would be needed. The total variable cost to produce the teddy bears is $ Fixed costs would increase by $ per year for the lease of the packaging equipment and XYZ Co estimates it could produce and sell teddy bears per year. Finished teddy bears could be sold for $ each.
a Complete the following table. Please make sure your final answers are accurate to decimal places. For any entries that do not need an amount, enter
b Should XYZ Co continue to sell the scrap cloth or should XYZ Co process the scrap into teddy bears to sell?XYZ Co produces skorts and jumper uniforms for school children. In the process of cutting out the cloth pieces for each product, a certain amount of scrap cloth is produced. XYZ Co has been selling
this cloth scrap to SouthCo for $ per pound. Last year, the company sold of scrap, which would be enough to make teddy bears that the management of Co is now interesting in
producing. Their processes would need some reprogramming, particularly in the cutting and stitching processes, but it would require no additional worker training. However, new packaging would be
needed. The total variable cost to produce the teddy bears is $ Fixed costs would increase by $ per year for the lease of the packaging equipment and XYZ Co estimates it could produce
and sell teddy bears per year. Finished teddy bears could be sold for $ each.
a Complete the following table. Please make sure your final answers are accurate to decimal places. For any entries that do not need an amount, enter
b Should XYZ Co continue to sell the scrap cloth or should XYZ Co process the scrap into teddy bears to sell?
XYZ Co should select one
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