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Determining the optimal Product Mix with One Constrained Resource Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $10 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 30 minutes of machine time. Assume that there are no other constraints. Required: If required, round your answers to the nearest whole number. If an amount is zero, enter "0". 1. What is the contribution margin per hour of machine time for each type of sweatshirt? Contribution Margin Swoop 100 Rufus 30 2. What is the optimal mix of sweatshirt? Optimal Mix Swoop 10,000 X units Rufus units 3. What is the total contribution margin earned for the optimal mix? $ 100,000 x Feedback Check My Work 1. Divide contribution margin for each team shirt type by required machine time/unit for CM per machine hour time. Divide by 60 minutes for hour percentage. 2. Consider which product has the higher CM. 3. Point to remember when making relevant decision. The option with the highest contribution margin per unit of the constrained resource should be chosen

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