Expedition Outfitters manufactures a variety of special clothing for hiking, skiing and mountaineering. They have decided to start production of two new parkas designed for use in extremely cold weather: Mount Everest and Rocky Mountain. Their manufacturing plant has $120$ hours of cutting time and $120$ hours of sewing time available to produce these two parkas. Each Mount Everest parka requires $30$ minutes of cutting time and $45$ minutes of sewing time, and each Rocky Mountain parka requires $20$ minutes of cutting and $15$ minutes of sewing. The cost of labor and material is $$150$ for each Mount Everest parka and $$50$ for each Rocky Mountain parka, and the average prices in the company$$s mail order catalog are $$250$ for the Mount Everest parka and $$200$ for the Rocky Mountain parka. As management considers that Mount Eve$-$rest is a unique coat that will improve the company$$s image, they specified that the production of this model should be at least $20\%$ of the total production. Assuming that Expedition Outfitters can sell all the coats of each type it can produce,

how many units of each model should it manufacture to maximize the total contribution to profits? 

Answer rating: 100% (QA)

To maximize the total contribution to profits for Expedition Outfitters we need to consider a concept called Contribution Margin Heres how to determin... View the full answer