EA12. LO 10.6 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 many of each product should be made?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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EA12. LO 10.6 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 many of each product should be made?
Transcribed Image Text:EA12. LO 10.6 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 many of each product should be made?
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