Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,500 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 24 minutes of machine time. Assume that there are no other constraints. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Required: 1. What is the contribution margin per hour of machine time for each type of sweatshirt? Do not round intermediate calculations. Round your answers to the nearest cent. Contribution Margin Swoop Rufus 2. What is the optimal mix of sweatshirts? Do not round intermediate calculations. Round your answers to the nearest whole number. If an amount is zero, enter "0" Optimal Mix Swoop Rufus 3. What is the total contribution margin earned for the optimal mac? Do not round intermediate calculations. Round your answer to the nearest dollar units units

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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Transcribed Image Text:Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,500 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 24 minutes of machine time. Assume that there are no other constraints. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. MAL Open spreadsheet Required: 1. What is the contribution margin per hour of machine time for each type of sweatshirt? Do not round intermediate calculations. Round your answers to the nearest cent. Contribution Margin. Swoop Rufus 2. What is the optimal mix of sweatshirts? Do not round intermediate calculations. Round your answers to the nearest whole number. If an amount is zero, enter "0" Optimal Mix) Swoop units units 3. What is the total contribution margin earned for the optimal mox? Do not round intermediate calculations. Round your answer to the nearest dollar

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