Carla Vista's Wind Toys manufactures decorative kites, banners, and windsocks. During the month of January, Carla Vista received orders for 5,000 Valentine's Day banners and 1,200 Easter kites. Because several sewing machines are in the shop for repairs, Carla Vista's has only 1,500 sewing machine hours available for production of these orders. Each Valentine's Day banner sells for $12.00. The banners take one hour to sew and have a total variable cost of $9.00 per banner. The Easter kites sell for $20.00. They take 30 minutes to sew and have a total variable cost of $15.00. (a) With only 1,500 sewing machine hours available, how many units should Carla Vista produce for the below items? Kites Banners Based on your calculations above, which products should Carla Vista prioritize for production in January?
Carla Vista's Wind Toys manufactures decorative kites, banners, and windsocks. During the month of January, Carla Vista received orders for 5,000 Valentine's Day banners and 1,200 Easter kites. Because several sewing machines are in the shop for repairs, Carla Vista's has only 1,500 sewing machine hours available for production of these orders. Each Valentine's Day banner sells for $12.00. The banners take one hour to sew and have a total variable cost of $9.00 per banner. The Easter kites sell for $20.00. They take 30 minutes to sew and have a total variable cost of $15.00. (a) With only 1,500 sewing machine hours available, how many units should Carla Vista produce for the below items? Kites Banners Based on your calculations above, which products should Carla Vista prioritize for production in January?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Carla Vista's Wind Toys manufactures decorative kites, banners, and windsocks. During the month of January, Carla Vista received
orders for 5,000 Valentine's Day banners and 1,200 Easter kites. Because several sewing machines are in the shop for repairs, Carla
Vista's has only 1,500 sewing machine hours available for production of these orders. Each Valentine's Day banner sells for $12.00.
The banners take one hour to sew and have a total variable cost of $9.00 per banner. The Easter kites sell for $20.00. They take 30
minutes to sew and have a total variable cost of $15.00.
(a)
With only 1,500 sewing machine hours available, how many units should Carla Vista produce for the below items?
Kites
Banners
Based on your calculations above, which products should Carla Vista prioritize for production in January?
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