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Comfy Fit Company Makes Three Sizes of Shirts, Small, Medium

Question 191

Essay

Comfy Fit Company makes three sizes of shirts, Small, Medium, and Large, on one assembly line that has a limit of 600 labor- hours per week. Comfy Fit Company can sell all the shirts it can make under current operating capacity. Manufacturing information per shirt for each product is as follows:  Small  Medium  Large  Selling pric e $8$12$15 Variable costs 5610 Labor- hours per shirt 0.30.51.0\begin{array}{llll}&\text { Small }& \text { Medium } & \text { Large }\\\text { Selling pric e } & \$ 8 & \$ 12 & \$ 15 \\\text { Variable costs } & 5 & 6 & 10 \\\text { Labor- hours per shirt } & 0.3 & 0.5 & 1.0\end{array} Requirements:
Determine the weekly contribution margin when all labor- hours are allotted to the product with the highest:
a. unit selling price.
b. unit contribution margin.
c. contribution per labor- hour.

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blured image Contribution per labor- hour:...

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