answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
forsale
21 day ago
14

Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the cutting machine area, which

is the chief constraint during production. Khaki shorts take 15 minutes on the cutting machine and have a contribution margin per pair of shorts of $16. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $32. If it is assumed that Rough Stuff has 4,800 hours available on the cutting machine to service a minimum demand for each product of 3,000 units, how much will profits increase if 100 more hours of machine time can be obtained?
Business
1 answer:
soldi70 [3.4K]21 day ago
8 0

Response:

$8,000

Clarification:

                                                    khaki shorts           khaki pants

machine minutes per unit                    15                         24

contribution margin per unit               $16                       $32

CM per machine minute                  $1.067                   $1.33

minimum demand                            3,000                   3,000

machine minutes required              45,000                72,000

total machine minutes available               288,000

total machine minutes remaining               171,000

production                                             0                       7,125

total production                                3,000                   10,125

total contribution margin               $48,000               $324,000

adding 100 more machine hours will elevate production time by 6,000 minutes, enabling the creation of an additional 250 khaki pants. Thus, the contribution margin increases by 250 x $32 = $8,000

I calculated contribution margin per minute; alternatively, contributing margin per hour could also be computed to identify which product yields better profitability.  Contribution margin per hour for shorts = $64, and for pants = $80. The outcome remains unchanged.

You might be interested in
Hypothesize why nearly an equal number of consumers use mobile and online banking to pay bills?
Mariulka [3449]

Answer:

Almost as many individuals utilize mobile banking as those who rely on online methods for bill payment, largely due to the convenience that both approaches offer.

Explanation:

To hypothesize involves suggesting a plausible rationale for a situation. Thus, a potential reason for the preference among many customers for online and mobile payment methods is the simplicity they present.

Some of these benefits are:

1. No more long waits in lines to settle payments with checks.

2. Transactions can be initiated from virtually anywhere and at any hour.

3. Fewer prerequisites are necessary to carry out transactions.

3 0
1 month ago
Assume Chester Corp. is downsizing the size of their workforce by 20% (to the nearest person) next year from various strategic i
harina [3503]

Answer:

$311,100

Explanation:

Solution

Let's remember the following details:

The assumption is that Chester Corp has reduced its workforce by = %

The estimated cost of exit interviews = 100

Normal separation expenses = $5000

Now,

The total number of employees = 305

The reduction in workforce = 20%

So,

The number of employees being laid off = 305 x 20% = 61 individuals

Thus,

The separation expense per employee = $5000

Cost for exit interviews = $100

Total expense per individual = $5,100

Now,

The overall separation cost = 61 individuals x total separation cost per employee

That is,

= 61 x 5100 = $311,100

3 0
1 month ago
The Career Cycle gives "10 tips on content and structure" of your resume. As a student, you may not have specific technical skil
Scilla [3549]

Answer: Individual aspirations and compatibility with the team.

Explanation:

Being a student means I don't have much relevant experience to share during job interviews. Therefore, it's crucial for me to highlight my personal aspirations, which include both immediate and future career objectives. I must also demonstrate my enthusiasm for joining the team and my capability to collaborate effectively as a team member.

Employers may overlook the essential skills necessary for team integration, such as leadership abilities, management expertise, communication proficiency, effective time management, organizational skills, etc., if I don't allocate time to cultivate these competencies.

7 0
27 days ago
For each of the following events, identify which of the determinants of demand or supply are affected. If demand is unaffected b
Nady [3242]

Answer:

(1) Demand Determinant - Number of purchasers

Supply Determinant - None

If individuals opt to have additional children, this results in an increased number of purchasers. Consequently, this influences the demand for a specific product, causing the demand curve to shift to the right.

(2) Supply Determinant - Prices of inputs

Demand Determinant - None

Steel is a key resource for companies, and if steel prices rise, production costs will increase, leading to a decrease in product supply.

(3) Supply Determinant - Technological advancements

Demand Determinant - None

Innovative technology will enhance firms' productivity, thereby increasing product supply.

(4) Demand Determinant - Pricing of substitute or complementary products

Supply Determinant - None

When the price of a substitute product goes up, the demand for minivans rises, resulting in a shift of the demand curve to the right.

(5) Demand Determinant - Changes in income

Supply Determinant - None

A decline in consumer wealth leads to diminished demand for minivans, prompting a leftward shift of the demand curve.

3 0
1 month ago
Han Corp's sales last year were $425,000, and its year-end receivables were $52,500. The firm sells on terms that call for custo
harina [3503]

Answer:

d. 15.09

Explanation:

425,000 sales

52,500 AR

within a year consisting of 365 days

Days Sales Outstanding

\frac{52,500}{425,000}\times 365 = 45.088 = 45.09

Average days late

Days \: Sales \: Outstanding - \: Allowed \: credit \: period = average \: days \: late

45.09 - 30 = 15.09

on average, customers clear their payments within 45 days.

This means they are paying, on average, 15.09 days later than the given credit terms.

4 0
1 month ago
Other questions:
  • The management of warby parker believes that its operations must be grounded in
    13·1 answer
  • Name the three general methods of title assurance and briefly describe each. Which would you recommend to a friend purchasing a
    14·1 answer
  • Alpha Company makes all its sales on account. The accounts receivable payment experience is as follows: Percent paid in the mont
    9·1 answer
  • Management's philosophy at Nike has often been that a fit body contributes to more productivity at work. Nike provides exercise
    12·1 answer
  • What approaches do supermarkets use to offset variations in customer traffic intensity?
    6·1 answer
  • Trompenaars found that a(n) _____ organizational culture is common in countries such as Turkey, Pakistan, Venezuela, China, Hong
    14·1 answer
  • The cost constraint suggests that, even when the cost of providing accounting information exceeds its benefit, the financial acc
    7·1 answer
  • If the stadium made $2,150,000 last year for sports events but only made $1,650,000 this year, what is the percentage decrease i
    6·2 answers
  • If a just-in-time purchasing policy is successful in reducing the total inventory costs of a manufacturing company, which of the
    8·1 answer
  • Suppose you are considering two cities, city A with elastic housing supply and city B with inelastic housing supply. The two cit
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!