Shoe Inc manufactures two types of summer sandals: bamboo and leather. The costs and financial data...

 

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Shoe Inc manufactures two types of summer sandals: bamboo and leather. The costs and financial data for both lines of sandals are shown in the table below. Sales Price Variable costs Number of Units produced within 1 DL hour Costs and CM per Bamboo $43 $16 Required: 3 units unit Leather $64 $32 4 units The company sells all sandals that it produces and the fixed costs are the same for the two products. The Shoe Inc. production area has capacity of 720 DL hours per month. 1. What is the constraint? 2. Which type of sandal should be emphasized in Shoe Inc's product mix? How many units of this sandal can be produced? Show your work. 3. If a sales person received a sales commission based on total revenue generated, not contribution margin, what product/type of sandal would they promote? Shoe Inc manufactures two types of summer sandals: bamboo and leather. The costs and financial data for both lines of sandals are shown in the table below. Sales Price Variable costs Number of Units produced within 1 DL hour Costs and CM per Bamboo $43 $16 Required: 3 units unit Leather $64 $32 4 units The company sells all sandals that it produces and the fixed costs are the same for the two products. The Shoe Inc. production area has capacity of 720 DL hours per month. 1. What is the constraint? 2. Which type of sandal should be emphasized in Shoe Inc's product mix? How many units of this sandal can be produced? Show your work. 3. If a sales person received a sales commission based on total revenue generated, not contribution margin, what product/type of sandal would they promote?

Answer rating: 100% (QA)

Solving for Shoe Incs Production Mix 1 Constraint The constraint in this scenario is the production ... View the full answer