Use the following information for Brief Exercises 8-22 and 8-23:
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 20 minutes of machine time. [Note: For all answers that are less than 1.0, round the answer to two decimal places. For all unit answers (e.g., the answer is greater than 1.0), round the answer to the nearest whole number.]
8-22 Determining the Optimal Product Mix with One Constrained Resource
Refer to the information for Comfy Fit Company above. Assume that there are no other constraints.
Required:
College Accounting, Chapters 1-27
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Intermediate Accounting: Reporting And Analysis
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Principles of Microeconomics
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