FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Pharoah's Wind Toys manufactures decorative kites, banners, and windsocks. During the month of January, Pharoah received orders for 5,000 Valentine’s Day banners and 1,200 Easter kites. Because several sewing machines are in the shop for repairs, Pharoah's has only 1,400 sewing machine hours available for production of these orders. Each Valentine’s Day banner sells for $12.00. The banners take one hour to sew and have a total variable cost of $10.00 per banner. The Easter kites sell for $20.00. They take 30 minutes to sew and have a total variable cost of $14.00.
With only 1,400 sewing machine hours available, how many units should Pharoah produce for the below items?
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