XYZ Leather Company manufactures and sells two products, wallets and belts, in its two-department plant. Operating data pertaining to the two products are as follows: Wallets Belts Selling price per unit P30 P50 Cost per unit: Variable manufacturing costs P8 P15 Variable marketing costs P2 P3 Fixed manufacturing costs P5 P5 Fixed marketing costs P6 P1 Cutting Finishing Wallet (per unit) 10 minutes 15 minutes Belts (per unit) 20 minutes 40 minutes Monthly direct labour hour (DLH) capacity 1,000 hours 1,200 hours XYZ has a non-cancellable contract with one of the major department stores to supply 1,800 belts for the last quarter, from October to December. The maximum expected sales of belts for the last quarter are 1,500 belts per month, which includes the noncancellable contract. The maximum expected sales of wallets are 2,500 units per month. The optimal production plan for the last quarter, October to December, is
XYZ Leather Company manufactures and sells two products, wallets and belts, in its two-department plant. Operating data pertaining to the two products are as follows:
Wallets Belts
Selling price per unit P30 P50
Cost per unit:
Variable
Variable marketing costs P2 P3
Fixed manufacturing costs P5 P5
Fixed marketing costs P6 P1
Cutting Finishing
Wallet (per unit) 10 minutes 15 minutes
Belts (per unit) 20 minutes 40 minutes
Monthly direct labour hour (DLH) capacity 1,000 hours 1,200 hours
XYZ has a non-cancellable contract with one of the major department stores to supply 1,800 belts for the last quarter, from October to December. The maximum expected sales of belts for the last quarter are 1,500 belts per month, which includes the noncancellable contract. The maximum expected sales of wallets are 2,500 units per month. The optimal production plan for the last quarter, October to December, is
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