1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
IRINA_888 [86]
3 years ago
13

Casual Essentials, Inc. manufactures two types of team shirts, the Homerun and the Goalpost, with unit contribution margins of $

5 and $15, respectively. Regardless of type, each team shirts must be fed through a stitching machine to affix the appropriate team logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Homerun shirt requires 6 minutes of machine time, and each Goalpost shirt requires 30 minutes of machine time.
Assume that a maximum of 50,890 units of each team shirts can be sold.
Required:
If required, round your answers to the nearest whole number.
1. What is the contribution margin per hour of machine time for each type of team shirts?
2. What is the optimal mix of team shirts?
3. What is the total contribution margin earned for the optimal mix?
Business
1 answer:
emmasim [6.3K]3 years ago
3 0

Answer:

1. What is the contribution margin per hour of machine time for each type of team shirts?

<em>Homerun = </em> $ 50

<em>Goalpost</em> =  $30

2. What is the optimal mix of team shirts?

Homerun =  50,890

Goalpost  = 3,822

3. What is the total contribution margin earned for the optimal mix?

Total contribution margin earned for the optimal mix = $311,780

Explanation:

<em>1. Contribution margin per hour of machine time for each type of team shirts</em>

<em><u>Homerun</u></em>

Contribution margin per hour of machine = $5 / (6/60)

                                                                     =  $ 50

<em><u>Goalpost</u></em>

Contribution margin per hour of machine = $15 / (30/60)

                                                                     =  $30

<em>2. Optimal mix of team shirts</em>

Determine if <em>machine time</em> is a limiting factor

<u>Demanded Hours</u>

Homerun 0.1 × 50,890  = 5,089

Goalpost 0.5 × 50,890  = 25445

Total Hours Demanded = 30,534

<u>Available Hours</u>

Available hours =1,000 hour × 7 machines

                          =7,000 hours

Demanded Hours > Available hours

Therefore  <em>machine time</em> is a limiting factor

Determine Mix

<em>Rank the T-Shirts based on contribution margin per hour of machine time</em>

Position 1. Homerun = 5,089

Position 2. Goalpost  = 1,911 (takes the remaining hours)

Number of T-Shirts (mix)

Homerun = 5,089 / 0.1 =  50,890

Goalpost  = 1,911 / 0.5 =  3,822

<em>3. The total contribution margin earned for the optimal mix</em>

Homerun =  50,890 × $5 =254,450

Goalpost  =  3,822 × $15 = 57,330

Total                                 = 311,780

You might be interested in
What is a subcontractor
iren [92.7K]

Answer:

A subcontractor is a company or person who is hired by a general contractor (or prime contractor, or main contractor) to perform a specific task as part of the overall project and is normally paid for services provided to the project by the originating general contractor.

Hope it helps!!! Please give brainliest!!!

4 0
3 years ago
Which of the following is a potential safety hazard?
butalik [34]
Please provide a proper information to answer this question
4 0
3 years ago
Read 2 more answers
Slow​ 'n Steady,​ Inc., has a stock price of $ 34​, will pay a dividend next year of $ 3.10​, and has expected dividend growth o
erica [24]

Answer:

10.92%

Explanation:

The formula and the computation of the estimated cost of equity capital is shown below:

Stock price = Next year dividend ÷ (cost of equity - expected dividend growth rate)

We assume the cost of equity be X

$34 = $3.10  ÷ (cost of equity - 1.8%)

$34 X - $34 × 1.8X = $3.10

After solving this,

The cost of equity would be 10.92%

3 0
3 years ago
In 2007, Gillette saw an opportunity to capture the market of 500 million Indians who used double edge razors with no protection
rusak2 [61]

Answer:

Gillette in India

The failure of the Vector was caused by the fact that Indian men have longer and thicker hair, which the lack of earlier research in the targeted demographic segment did not discover.

Explanation:

Since Indian men have longer and thicker hair than the local consumers of Gillette's razor products in America, an earlier research would have uncovered the fact.  Thereafter, the discovery would have been incorporated into the design and production of Vector for the Indian market. No wonder, with its Mach 3 Turbo razor, Gillette overcame its initial inertia and handicap and made a success of the razor business in India.

5 0
2 years ago
Beginning merchandise inventory would be found on the worksheet in the
mrs_skeptik [129]
<span>A. income statement debit column</span>
6 0
3 years ago
Read 2 more answers
Other questions:
  • Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produ
    5·1 answer
  • Logistics Trucking Company operates a fleet of fuel trucks. When one of the trucks is positioned to receive a load of biofuel, i
    14·1 answer
  • Kansas Company uses a standard cost accounting system. In 2017, the company produced 28,000 units. Each unit took several pounds
    12·1 answer
  • Technician a says that riveted linings are more common on light-duty vehicles since they are less expensive to build and the riv
    5·1 answer
  • If during the process of negotiating a transaction a real estate licensee discourages a buyer from seeking legal advice on the g
    12·1 answer
  • What is the function of the ppi
    15·1 answer
  • Identify at least one cost and one benefit of using fiscal policy as a tool to pursue the goal of economic growth. Short respons
    7·2 answers
  • has issued bonds that have a 8% coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and
    13·1 answer
  • Why should you avoid sending or receiving private email at work?
    15·2 answers
  • a manager has been asked to approve a marketing campaign that promotes food products to children and is concerned that the food
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!