Country Curtains Company makes fashionable window curtains and valances. Data concerning the company's three product lines...

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Country Curtains Company makes fashionable window curtains and valances. Data concerning the company's three product lines appear below. Selling price per unit Variable cost per unit Feet of fabric Sewing machine time 6 Curtains 3 Curtains Valance $50 $40 $55 $26 $16 $25 6 feet 3 feet 4 feet 6 minutes 8 minutes 16 minutes Required: 1. If we assume that the total fabric available is the constraint in the production process, how much contribution margin per foot of the constrained resource is earned by each product? 2. Which product offers the most profitable use of the fabric? 3. If we assume that a labor shortage has required the company to cut back its production so much that its new constraint has become the total available sewing machine time, how much contribution margin per minutes of the constrained resource is earned by each product? Which product offers the most profitable use of the sewing machine time? 4. 5. Which product has the largest contribution margin per unit? Why wouldn't this product be the most profitable use of the constrained resource in either case? Country Curtains Company makes fashionable window curtains and valances. Data concerning the company's three product lines appear below. Selling price per unit Variable cost per unit Feet of fabric Sewing machine time 6 Curtains 3 Curtains Valance $50 $40 $55 $26 $16 $25 6 feet 3 feet 4 feet 6 minutes 8 minutes 16 minutes Required: 1. If we assume that the total fabric available is the constraint in the production process, how much contribution margin per foot of the constrained resource is earned by each product? 2. Which product offers the most profitable use of the fabric? 3. If we assume that a labor shortage has required the company to cut back its production so much that its new constraint has become the total available sewing machine time, how much contribution margin per minutes of the constrained resource is earned by each product? Which product offers the most profitable use of the sewing machine time? 4. 5. Which product has the largest contribution margin per unit? Why wouldn't this product be the most profitable use of the constrained resource in either case?

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Contribution Margin per unit can be calculated as selling price per unit variable cost per unit Cont... View the full answer