I have part 1 complete need help with 2 and 3. Thanks Casual Essentials, Inc. ma
ID: 2455323 • Letter: I
Question
I have part 1 complete need help with 2 and 3. Thanks
Casual Essentials, Inc. manufactures two types of team shirts, the Homerun and the Goalpost, with unit contribution margins of $5 and $15, respectively. Regardless of type, each team shirts must be fed through a stitching machine to affix the appropriate team logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Homerun shirt requires 6 minutes of machine time, and each Goalpost shirt requires 30 minutes of machine time.
Assume that a maximum of 50,890 units of each team shirts can be sold.
Required:
If required, round your answers to the nearest whole number.
1. What is the contribution margin per hour of machine time for each type of team shirts?
2. What is the optimal mix of team shirts?
3. What is the total contribution margin earned for the optimal mix?
Contribution Margin Homerun $ Goalpost $Explanation / Answer
Total time available = 1000*7 =7000 Hrs Total time available in Mins = 7000*60 =420,000 Statement showing computations Particulars Homerun Goalpost Total Unit contribution Margin 5.00 15.00 Time Required in Minutes per unit 6.00 30.00 Contribution per minute 0.83 0.50 Ranking 1.00 2.00 Total Minutes Available 420,000.00 Time required for Homerun = 50,890 * 6 305,340.00 Remaining Time in Minutes 114,660.00 Time required for Goal post per unit 30.00 Maximum Production of Goalpost = 114660/30 3,822.00 Production in Units or Optimal product mix 50,890.00 3,822.00 Unit contribution Margin 5.00 15.00 Total Contribution = Cont pu *No of units 254,450.00 57,330.00 311,780.00