product should be made? Khaki shorts pairs Khaki pants pairs

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 12EA: Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the...
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Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes
through the cutting machine area, which is the chief constraint during production. Khaki shorts
take 15 minutes on the cutting machine and have a contribution margin per pair of shorts of
$15. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per
pair of pants of $30. If it is assumed that Rough Stuff has 4,740 hours available on the cutting
machine to service a minimum demand for each product of 3,000 units, how many of each
product should be made?
Khaki shorts
pairs
Khaki pants
pairs
Transcribed Image Text:Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the cutting machine area, which is the chief constraint during production. Khaki shorts take 15 minutes on the cutting machine and have a contribution margin per pair of shorts of $15. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $30. If it is assumed that Rough Stuff has 4,740 hours available on the cutting machine to service a minimum demand for each product of 3,000 units, how many of each product should be made? Khaki shorts pairs Khaki pants pairs
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