Question

PA13. LO 10.6 Sports Specialists makes baseballs and softballs in a three-step process. Unfortunately, the sewing machine process has been identified as a bottleneck. Each softball has a contribution margin of $6.00 and each baseball has a contribution margin of $2.00. The sewing machine can make 10 softballs or 25 baseballs in one hour. A. If demand for both products is unlimited and the sewing machine capacity cannot be expanded, which product should be produced? B. If demand for each ball is limited to 6,000 balls and there are 800 hours available on the machine, how many of each product should be produced?

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

4 Answer 2 Part A) If sweing machine capacity can not be expanded, then we will produce that product which produces more contribution margin per sewing machine hour Statement of contribution Margin Per machine Hour 5 Particular SoftBall Base Ball 6 Contribution Margin Per Unit 7 No. of units in One Sewing Machine Hour 101 8 Contribution Margin Per Sewing Machine Hours 60 $ 9 So, softball has higher contribution margin per sewing machine hour 10 11 The correct answer softballs should be produced, if demand is unlimited. 13 Part B) 14 Statement of Product Mix No. of Units No. of units in 1 Hour 15 Particulars 16 SoftBall 17 Base Ball 18 6000 5000 Total sewing machine hours 600 200 800 20 So the correct answer is 21 No. of Units 22 SoftBall 23 Base Ball 24 6000 5000