(a) Concept Introduction: Contribution margin is the difference between the sales and variable cost. In other words, it is computed by subtracting the sales by variable cost. Production constraints: There are a number of limiting factor on the quantity and nature of the output which was completed in the given time by the producer. To find out: The contribution margin by glass type and total company operating income for the budgeted units of production.

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Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 30 minutes of machine time. Assume that a maximum of 50,440 units of each sweatshirt 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 sweatshirt? Contribution Margin Swoop $ Rufus $ 2. What is the optimal mix of sweatshirt? Optimal Mix Swoop units Rufus units 3. What is the total contribution margin earned for the optimal…

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Chapter 12, Problem 12.2MBA

To determine

(a)

Concept Introduction:

Contribution margin is the difference between the sales and variable cost. In other words, it is computed by subtracting the sales by variable cost.

Production constraints: There are a number of limiting factor on the quantity and nature of the output which was completed in the given time by the producer.

To find out:

The contribution margin by glass type and total company operating income for the budgeted units of production.

To determine

(b)

Concept Introduction:

Contribution margin is the difference between the sales and variable cost. In other words, it is computed by subtracting the sales by variable cost.

Production constraints: There are a number of limiting factor on the quantity and nature of the output which was completed in the given time by the producer.

To find:

The more beneficial product for the company.

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Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 30 minutes of machine time. Assume that a maximum of 50,440 units of each sweatshirt 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 sweatshirt? Contribution Margin Swoop $ Rufus $ 2. What is the optimal mix of sweatshirt? Optimal Mix Swoop units Rufus units 3. What is the total contribution margin earned for the optimal…

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