Fit It Better Co works on four different types of leather items: shoes, jackets, handbags,...

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Accounting

Fit It Better Co works on four different types of leather items: shoes, jackets, handbags, and luggage. A limiting resource constraint is the number of machine hours available. The following data has been obtained:

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Which one of these four items is most profitable? Support your answer with appropriate calculations.

\begin{tabular}{lrrrr} & Shoes & Jackets & Handbags & Luggage \\ \hline Units repaired per machine hour & 5 & 3 & 4 & 3 \\ Variable cost per unit & $5 & $10 & $8 & $14 \\ Customer charge per unit & $9 & $15 & $11 & $20 \end{tabular}

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