Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Chapter 10, Problem 11EA
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 $16. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $32. 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 3,000 units, how much will profits increase f 100 more hours of machine time can be obtained?
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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 $16. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $32. 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 3,000 units, how many pairs of khaki shorts should be made?
a. buy the roll
b. make the roll
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 $16. Khaki pants take 24 minutes on the
cutting machine and have a contribution margin per pair of pants of $32. 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 2,800 units, how many of each
product should be made?
Khaki shorts
pairs
Khaki pants
pairs
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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 $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 3,000 units, how much will profits increase if 88 more hours of machine time can be obtained?
1,950 X
Chapter 10 Solutions
Principles of Accounting Volume 2
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