Question: Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Comfy Fit Company manufectures two types of university sweatshirts, the 5 woop
Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint Comfy Fit Company manufectures two types of university sweatshirts, the 5 woop and the Aufus, with unit contributian 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 5 woop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 30 minutes of machine time. Assume that a maximum of 48,450 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? 2. What is the optimat mix of sweatshirt? 3. What is the total contribution margin earned for the optimal mix
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