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Homework answers / question archive / Use your answer to #2 to create the 'status quo'

Use your answer to #2 to create the 'status quo'


Use your answer to #2 to create the 'status quo'. Fischer machine comes up with the following offer 'hey, we can RENT you an extra sewing machine for $4,000 and it has a capacity of another 3,600 hours!'. Do you take the offer? SHOW YOUR WORK. Question#2: 1.     Assume that there IS a capacity issue, in that the sewing machine can ONLY work 3600 (about 10 hours a day) hours (or it will break). Also, assume that annual demand for nylon suits is 800 and annual demand for cotton is also 800. What is the optimal product mix in terms of making/selling nylon and cotton suits? SHOW YOUR WORK. Original info: Nylon Jogging Suit: 2yds/suit at $10/yd = direct materials; 5dlh/suit at $10/dlh = direct labor; 2mh/suit at $10/mh = VOH (utilities/grease); 5dlh/suit at $10/dlh = VOH (indirect labor). Cotton Jogging Suit: 3yds/suit at $20/yd = direct materials; 4dlh/suit at $5/dlh = direct labor; 4mh/suit at $10/mh = VOH (grease/utilities); 4dlh/suit at $10/dlh = VOH (indirect labor).

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