Trailblazers produced two types of boots: men's and women's. The two types of boots are similar,...

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Trailblazers produced two types of boots: men's and women's. Thetwo types of boots are similar, except the women's boots are morestylish. Both the men's and women's boots are made with the samemachine. It takes 15 minutes of machine time to produce one pair ofmen's boots, whereas it takes 30 minutes of machine time to produceone pair of women's boots. The difference in production timeresults mainly from the different materials used in construction.The relevant data concerning the two types of boots are asfollows:
Men's Women's
Sales price (per pair) $35 $40
Less: Direct Materials 10 13
Direct Labor 4 4
Variable Overhead 8 10
Contribution Margin $13 $13
Required machine time 1/4 hour 1/2 hour
A. If the amount of machine time available is limited, whichboot should be produced first?
B. If the total machine time available is 640 hours per monthand the demand for each type of boot is 1,000 pairs per month, howmany of each type should be produced to maximize profit? (Roundanswer to the nearest pair.)
C. What other factors should be considered in this decision, andhow would they affect the decision?

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3.7 Ratings (512 Votes)

Mens Womens Selling price per pair 3500 4000 Direct Materials per pair 1000 1300 Direct labor per pair 400 400 Variable Manufacturing Overhead per pair 800 1000 Contribution Margin per unit 1300 1300 Required no of machine hours 025 050 Contribution Margin per machine hour 5200 2600 Ranking See Answer

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Transcribed Image Text

Trailblazers produced two types of boots: men's and women's. Thetwo types of boots are similar, except the women's boots are morestylish. Both the men's and women's boots are made with the samemachine. It takes 15 minutes of machine time to produce one pair ofmen's boots, whereas it takes 30 minutes of machine time to produceone pair of women's boots. The difference in production timeresults mainly from the different materials used in construction.The relevant data concerning the two types of boots are asfollows:Men'sWomen'sSales price (per pair)$35$40Less: Direct Materials1013Direct Labor44Variable Overhead810Contribution Margin$13$13Required machine time1/4 hour1/2 hourA. If the amount of machine time available is limited, whichboot should be produced first?B. If the total machine time available is 640 hours per monthand the demand for each type of boot is 1,000 pairs per month, howmany of each type should be produced to maximize profit? (Roundanswer to the nearest pair.)C. What other factors should be considered in this decision, andhow would they affect the decision?

	Men's	Women's
Sales price (per pair)	$35	$40
Less: Direct Materials	10	13
Direct Labor	4	4
Variable Overhead	8	10
Contribution Margin	$13	$13
Required machine time	1/4 hour	1/2 hour