Question

ннен CALOULATOR MESSAGE HY IRSTRICTOR FULL SCREEN PRONTER VRS1ON 4 ACE NEXE Exercise 8-14 Wind's Wind Toys manufactures decorative ktes, banners, and windsacks. During the month of January, Wind receivewd arders for 3,c00 Valentice's Day banners and 1,200 Eastar kites Because several sewing machines are in the shop for repairs, wind has only 1,000 sewing machine hours available for produrtion of these orders. Each Valentine's Day banner sels for $12. The banners take one hour to sew and have a total variable cost of $9 per bansec The Easter kites sel for $15. They take 15 minutes to sew and have a total variable cost of $14. (a) With only 1,000 sewing machine hours avalable. hoew many units should Wind produce for the belos ibems? Kites Banners Based an your caloulations above, which peoducts should Wendy prioritize for production in January? Open Sho Work Click if you would like to Sshow Work for this questioe:

Answer 1

SON: > During the month of January, wendy received Oiders for. 3.000 valentie's Day bampers and 1.200 Easter kites, a) wendy is has only 1.100 sewing machine hours available for production of these 3 tach valentines Day banners sells for $ 12. * Total variable cost of sag per banner. a) The easted kites sell for $85. as they take 15 minutes to sew and have a total vasia -ble cost of $14. computation of contribution margin per houo and - ranking project. kites Banners Particulars Selling Price per unit $ 25.00 $19.00 variable cost per unit 1 $14.00 $ 09.00 $3.00 contribution margin per unit) $11.00 machine hours per unit $0.33 1 $ 3.00 contribution margin per hour. I $6.00 Rank.

As contribution margin per houd is highest for kites. utilized for production machine hours will be first of kites thereafter banners. Nos of hours required in 1800 kites =1200 X 6-33 - 396 hounds. remaining Nos of banners to be produced with hours = (10o - 396/1² = 704/12704. These forse wendy be able to produce kites = 396 Banners . 704.