Wildhorse's Wind Toys manufactures decorative kites, banners, and windsocks. During the month of January, Wildhorse received orders for 5,000 Valentine's Day banners and 1,300 Easter kites. Because several sewing machines are in the shop for repairs, Wildhorse's has only 1,200 sewing machine hours available for production of these orders. Each Valentine's Day banner sells for $11.00. The banners take one hour to sew and have a total variable cost of $9.00 per banner. The Easter kites sell for $15.00. They take 30 minutes to sew and have à total variable cost of $12.00. (a) With only 1,200 sewing machine hours available, how many units should Wildhorse produce for the below items? Kites Banners Based on your calculations above, which products should Wildhorse prioritize for production in January?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Wildhorse's Wind Toys manufactures decorative kites, banners, and windsocks. During the month of January, Wildhorse received
orders for 5,000 Valentine's Day banners and 1,300 Easter kites. Because several sewing machines are in the shop for repairs,
Wildhorse's has only 1,200 sewing machine hours available for production of these orders. Each Valentine's Day banner sells for
$11.00. The banners take one hour to sew and have a total variable cost of $9.00 per banner. The Easter kites sell for $15.00. They
take 30 minutes to sew and have a total variable cost of $12.00.
(a)
With only 1,200 sewing machine hours available, how many units should Wildhorse produce for the below items?
Kites
Banners
Based on your calculations above, which products should Wildhorse prioritize for production in January?
Transcribed Image Text:Wildhorse's Wind Toys manufactures decorative kites, banners, and windsocks. During the month of January, Wildhorse received orders for 5,000 Valentine's Day banners and 1,300 Easter kites. Because several sewing machines are in the shop for repairs, Wildhorse's has only 1,200 sewing machine hours available for production of these orders. Each Valentine's Day banner sells for $11.00. The banners take one hour to sew and have a total variable cost of $9.00 per banner. The Easter kites sell for $15.00. They take 30 minutes to sew and have a total variable cost of $12.00. (a) With only 1,200 sewing machine hours available, how many units should Wildhorse produce for the below items? Kites Banners Based on your calculations above, which products should Wildhorse prioritize for production in January?
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