Question: Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and

  1. Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint

    Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 30 minutes of machine time.

    Assume that a maximum of 49,280 units of each sweatshirt can be sold.

    Required:

    If required, round your answers to the nearest whole number.

    1. What is the contribution margin per hour of machine time for each type of sweatshirt?

    Contribution Margin
    Swoop $fill in the blank 1
    Rufus $fill in the blank 2

    2. What is the optimal mix of sweatshirt?

    Optimal Mix
    Swoop fill in the blank 3 units
    Rufus fill in the blank 4 units

    3. What is the total contribution margin earned for the optimal mix? $fill in the blank 5

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