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 $15. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $30. 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 much will profits Increase if 94 more hours of machine time can be obtained? $4

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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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 $15. Khaki pants take 24 minutes on the cutting machine and have a
contribution margin per pair of pants of $30. 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 much will profits Increase if 94 more hours of machine time can be
obtained?
Transcribed Image Text:takeAssignmentSessionLocator=&inprogress=false 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 $15. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $30. 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 much will profits Increase if 94 more hours of machine time can be obtained?
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