Question

Wendy's Wind Toys manufactures decorative kites, banners, and windsocks. During the month of January, Wendy received orders for 3,000 Valentine's Day banners and 1,200 Easter kites. Because several sewing machines are in the shop for repairs, Wendy's has only 1,000 sewing machine hours available for production of these orders. Each Valentine's Day banner sells for $12. The banners take one hour to sew and have a total variable cost of $9 per banner. The Easter kites sell for $15.
They take 15 minutes to sew and have a total variable cost of $14.

Required
a. With only 1,000 sewing machine hours available, how many of each product should Wendy schedule for production in January?
b. If Wendy’s has promised all customers that their orders will be completed in January, what steps should managers take to meet those production demands?



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  • CreatedFebruary 21, 2014
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