Wigs Inc.'s vendor supplying patented super soft silk netting lost their factory due to inclement weather....

 

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Wigs Inc.'s vendor supplying patented super soft silk netting lost their factory due to inclement weather. They are evaluating new suppliers, but that is not looking good. The prior vendor will take four months to find a new factory and get back to production. In the meantime, they have 58 yards of netting on hand, not enough to meet market demand for either wig type. What wig type should produced with the remaining netting and how many of that product can be produced? Round to a whole number of wigs that can be produced that maximizes the contribution margin for the remaining netting. Sales price Variable costs Netting required per wig Curly $150 $90 .4 yards Straight $120 $64 .5 yards Wigs Inc.'s vendor supplying patented super soft silk netting lost their factory due to inclement weather. They are evaluating new suppliers, but that is not looking good. The prior vendor will take four months to find a new factory and get back to production. In the meantime, they have 58 yards of netting on hand, not enough to meet market demand for either wig type. What wig type should produced with the remaining netting and how many of that product can be produced? Round to a whole number of wigs that can be produced that maximizes the contribution margin for the remaining netting. Sales price Variable costs Netting required per wig Curly $150 $90 .4 yards Straight $120 $64 .5 yards

Answer rating: 100% (QA)

To determine the wig type that should be produced using the remaining netting and the quantity that ... View the full answer