Determining the Optimal Product Mix with One Constrained Resource

Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $8 and $20, 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 1,500 hours of machine time per year. Each Swoop sweatshirt requires 9 minutes of machine time, and each Rufus sweatshirt requires 24 minutes of machine time.

Assume that there are no other constraints.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

Required:

1.	What is the contribution margin per hour of machine time for each type of sweatshirt? Do not round intermediate calculations. Round your answers to the nearest cent.
		Contribution Margin
	Swoop	$
	Rufus	$
2.	What is the optimal mix of sweatshirts? Do not round intermediate calculations. Round your answers to the nearest whole number. If an amount is zero, enter "0".
		Optimal Mix
	Swoop
	Rufus
3.	What is the total contribution margin earned for the optimal mix? Do not round intermediate calculations. Round your answer to the nearest dollar.