Accounting 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 $17. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $34. If it is assumed that Rough Stuff has 4,800 hours available on the cutting machine to service a minimum demand for each product of 3,400 units, how many of each product should be made?

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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Accounting
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 $17. Khaki pants take 24
minutes on the cutting machine and have a contribution margin per pair of
pants of $34. If it is assumed that Rough Stuff has 4,800 hours available on the
cutting machine to service a minimum demand for each product of 3,400 units,
how many of each product should be made?
Khaki shorts
??
Khaki pants
??
Transcribed Image Text:Accounting 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 $17. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $34. If it is assumed that Rough Stuff has 4,800 hours available on the cutting machine to service a minimum demand for each product of 3,400 units, how many of each product should be made? Khaki shorts ?? Khaki pants ??
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ISBN:
9781947172609
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OpenStax
Publisher:
OpenStax College