Expedition Outfitters manufactures a variety of special clothing for hiking, skiing and mountaineering. They have decided to start production of two new parkas designed for use in extremely cold weather: Mount Everest and Rocky Mountain. Their manufacturing plant has 120 hours of cutting time and 120 hours of sewing time available produce these two parkas. Each Mount Everest parka requires 30 minutes of cutting time and 45 minutes of sewing time, and each Rocky Mountain parka requires 20 minutes of cutting and 15 minutes of sewing. The cost of labor and material is $150 for each Mount Everest parka and $50 for each Rocky Mountain parka, and the average prices in the company's mail order catalog are $250 for the Mount Everest parka and $200 for the Rocky Mountain parka. As management considers that Mount Everest is a unique coat that will improve the company's image, they specified that the production of this model should be at least 20% of the total production. Assuming that Expedition Outfitters can sell all the coats of each type it can produce, how many units of each model should it manufacture to maximize the total contribution to profits?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Expedition Outfitters manufactures a variety of special clothing for hiking, skiing and mountaineering. They have decided to start production of two new parkas designed for use in extremely cold
weather: Mount Everest and Rocky Mountain. Their manufacturing plant has 120 hours of cutting time and 120 hours of sewing time available to produce these two parkas. Each Mount Everest
parka requires 30 minutes of cutting time and 45 minutes of sewing time, and each Rocky Mountain parka requires 20 minutes of cutting and 15 minutes of sewing. The cost of labor and material is
$150 for each Mount Everest parka and $50 for each Rocky Mountain parka, and the average prices in the company's mail order catalog are $250 for the Mount Everest parka and $200 for the
Rocky Mountain parka. As management considers that Mount Everest is a unique coat that will improve the company's image, they specified that the production of this model should be at least
20% of the total production. Assuming that Expedition Outfitters can sell all the coats of each type it can produce, how many units of each model should it manufacture to maximize the total
contribution to profits?
Transcribed Image Text:Expedition Outfitters manufactures a variety of special clothing for hiking, skiing and mountaineering. They have decided to start production of two new parkas designed for use in extremely cold weather: Mount Everest and Rocky Mountain. Their manufacturing plant has 120 hours of cutting time and 120 hours of sewing time available to produce these two parkas. Each Mount Everest parka requires 30 minutes of cutting time and 45 minutes of sewing time, and each Rocky Mountain parka requires 20 minutes of cutting and 15 minutes of sewing. The cost of labor and material is $150 for each Mount Everest parka and $50 for each Rocky Mountain parka, and the average prices in the company's mail order catalog are $250 for the Mount Everest parka and $200 for the Rocky Mountain parka. As management considers that Mount Everest is a unique coat that will improve the company's image, they specified that the production of this model should be at least 20% of the total production. Assuming that Expedition Outfitters can sell all the coats of each type it can produce, how many units of each model should it manufacture to maximize the total contribution to profits?
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