Question

Based on the information you used to create your schedule and curve, which product would you recommend the Shoe Hut focus on, and why? Provide details that support your answer.

Answer 1

Answer: Shoe cut should focus on running shoes.

Explanation:

The resources of the company can be fully utilized when they are on the PPF ( Production Possibility Curve). Additional goods cannot be produced without foregoing another product. For the study we can consider that in combination B 12 units of running shoes are produced and 2 units of hiking boots are produced.

If the hiking boots are foregone then 3 units of running shoes can be produced additionally. The maximum capacity for running shoes is 15 and that of hiking shoes is only 10. So the Shoe Hut should focus on producing running shoes insert.

Answer 2

Answer:

I suggest we produce the running shoe inserts. In total we can produce 15 of them compared to only 10 hiking boots inserts. Plus, for every 2 hiking boot inserts, we could've made 3 running shoe inserts. A ratio of 3:2 and 15:10. It’s simple. You go with the bigger numbers. We can make more running shoe inserts for less of a production cost than if we went with hiking boot inserts.  

Explanation:

I felt a more simple answer might be wanted. I'm doing this project too, so good luck everyone! :D