Solution-How many of each type should be produced to

How many of each type should be produced to maximise profit

Assignment Help Accounting Basics

Reference no: EM131692779

Question - Limited resource decision

Trailblazers produces two types of hiking boots: the men's boot and the women's boot. The two types of boots are similar except that the women's boots are more stylish. Both types are made using the same machines. It takes 15 minutes of machine time to produce one pair of men's boots, whereas it takes 30 minutes of machine time to produce one pair of women's boots. The difference in production time results mainly from the different materials used in construction. The relevant data concerning the two types are as follows:

	Men's	Women's
Sales price (per pair)	$35	$40
Less: Direct materials	10	13
Direct variable	4	4
Variable overhead	8	10
Contribution margin	$13	$13
Required machine time	¼ hour	½ hour

Required -

a. If the amount of machine time available to Trailblazers is limited, which boot should be produced first?

b. If the total machine time available is 640 hours per month and the demand for each type of boot is 1000 pairs per month, how many of each type should be produced to maximise profit?

c. What other factors should be considered in this decision, and how would they impact the decision?

Reference no: EM131692779

Questions Cloud

Discuss socio-economic position : socio-economic position plays a huge part in consumer motivation and behavior

Summarize the information contained in the source : Discuss one way in which you help reduce your energy consumption. No more than 2 students should choose the same manner of reduction.

Describe the hr job positions and responsibilities listed : Describe the HR job positions and the responsibilities listed for that HR department. Propose three ways that the company can increase diversity.

Total number of degrees of freedom for deviations from means : Three random samples of sizes, 30, 48, and 32, respectively, are collected, and the three sample means are computed.

How many of each type should be produced to maximise profit : If the total machine time available is 640 hours per month, how many of each type should be produced to maximise profit

Growth of the nonprofit sector : What factors do you think explain the growth of the nonprofit sector in the United States over the past decade?

State where and when the production took place : State where and when the production took place and what you perceived as the central production concept of the production

Under what conditions is estimator a better than b : Suppose that you have two biased estimators of the same population parameter. Estimator A has a bias equal to 1/n.

Developing a strong ethical culture : For this module, you are required to submit Case Study 2, "Discussion Case: Alcoa's Core Values in Practice," at the end of Chapter 5, page 111.

User Account

All Pages

How many of each type should be produced to maximise profit

Reference no: EM131692779

Reference no: EM131692779

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT