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 1000 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.
Assume that a maximum of 40000 units of each sweatshirt can be sold.
$
What is the contribution margin per hour of machine time for the Rufus sweatshirts? Round intermediate calculations to 4 decimal places and round
your final answer to the nearest dollar if rounding is required. $
Now the optimal mix is units of Swoop sweatshirts and units of Rufus sweatshirts.
$