(Solved): Use below information for Questions 7 to 8: I Inc. produces skirts from a special fabric. The fabri ...
Use below information for Questions 7 to 8: I Inc. produces skirts from a special fabric. The fabric is special because of the way it fits many body types. A well-known retail establishment has asked Inc. to produce
3,040t-shirts from the same fabric. The factory has unused capacity, so Hanım, the owner of Per unit input consumption and cost data for the skirts and
t-shirts are as follows: Unit contribution margin for skirts is
$43. Unit fabric cost is
$11, DL per hour is
$11. Q-7) Suppose charge for the t-shirts? Q-8) Now suppose that the fabric is in short supply. Every unit of fabric Inc. uses to make t-shirts will reduce the skirts that it can make and sell. What is the minimum price the company should charge for the t-shirts? (Assume fractional number of skirts and t-shirts can be produced and sold.)
