Question: 1. Please create an optimal production schedule given the departmental constraints. 2. Determine the forecasted Operating Income Statement for each year until 2026. Ignore the
1. Please create an optimal production schedule given the departmental constraints.
2. Determine the forecasted Operating Income Statement for each year until 2026. Ignore the taxes and the time value of money.
| Item 1 | Item 2 | Item 3 | Item 4 | Item 5 | |
| Sales (units) | 150,000 | 180,000 | 400,000 | 550,000 | 55,000 |
| Sales Price (per unit) | $19.99 | $34.99 | $49.99 | $29.99 | $99.99 |
| Direct Materials (per unit) | $15.00 | $12.00 | $18.00 | $2.75 | $40.00 |
| Direct Labour (per unit) | $0.30 | $1.50 | $4.00 | $1.25 | $8.00 |
| Variable Overhead (per unit) | $0.45 | $2.25 | $6.00 | $2.25 | $12.00 |
| Variable Sales (per unit) | $3.00 | $5.25 | $7.50 | $5.50 | $15.00 |
| Fixed Overhead Cost (per year) | $450,000 | $565,000 | $184,300 | $280,100 | $354,000 |
| Fixed sales, general and administration Cost (per year) | $125,000 | $125,000 | $125,000 | $125,000 | $125,000 |
| Production Minutes (per unit) | 2 | 5 | 14 | 6 | 25 |
| Total Production Hours Available | 78,500 |
- Assume that variable 2023 forecasted numbers will increase by 5% annually until 2026 and fixed 2023 forecasted numbers will increase by 3% annually until 2026.
- If XXXX is going to continue producing apparel, he would like to spend $35M on January 01, 2023, on a national advertising campaign explaining the benefits of XXX performance apparel. This would be a one-time cost.
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