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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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