Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the cutting machine area, which is the chief constraint during production. Khaki shorts take 15 minutes on the cutting machine and have a contribution margin per pair of shorts of $16. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $32. If it is assumed that Rough Stuff has 4, 800 hours available on the cutting machine to service a minimum demand for each product of 3,000 units, how much will profits increase if 100 more hours of machine time can be obtained?
Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the cutting machine area, which is the chief constraint during production. Khaki shorts take 15 minutes on the cutting machine and have a contribution margin per pair of shorts of $16. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $32. If it is assumed that Rough Stuff has 4, 800 hours available on the cutting machine to service a minimum demand for each product of 3,000 units, how much will profits increase if 100 more hours of machine time can be obtained?
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 11EB: Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes...
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![Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes
through the cutting machine area, which is the chief constraint during production. Khaki
shorts take 15 minutes on the cutting machine and have a contribution margin per pair of
shorts of $16. Khaki pants take 24 minutes on the cutting machine and have a contribution
margin per pair of pants of $32. If it is assumed that Rough Stuff has 4,800 hours available on
the cutting machine to service a minimum demand for each product of 3, 000 units, how much
will profits increase if 100 more hours of machine time can be obtained?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff822e662-0723-4d4f-a6f0-07e2a301d540%2F8f6adab4-1e52-4d4a-8ef3-c911ea2483d2%2Fo581vjw_processed.png&w=3840&q=75)
Transcribed Image Text:Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes
through the cutting machine area, which is the chief constraint during production. Khaki
shorts take 15 minutes on the cutting machine and have a contribution margin per pair of
shorts of $16. Khaki pants take 24 minutes on the cutting machine and have a contribution
margin per pair of pants of $32. If it is assumed that Rough Stuff has 4,800 hours available on
the cutting machine to service a minimum demand for each product of 3, 000 units, how much
will profits increase if 100 more hours of machine time can be obtained?
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