I need to know the contribution margin for each. Texteriles...
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I need to know the contribution margin for each.
Texteriles Company creates different types of bolts of cloth. These bolts of cloth are made on the same machinery The textile machines have the capacity of 3,600 hours per month. Texteriles is considering producing three different types of cloth: denim, chenille, and gauze, with contribution margins per bolt of $14. $22, and $9, respectively. Texteriles knows it can sell only a total of 6,000 bolts of denim, 2,000 bolts of chenille, and/or 1,200 bolts of gauze. A bolt of each type of cloth requires a different amount of machine time as follows: denim takes 0.5 machine-hours, chenille takes 1 machine-hour, and gauze takes 0.3 machine-hours. What combination of products will maximize the profits of Texteriles? Answer is complete but not entirely correct. Combination of Products Contribution 1,200 bolts of gauzo $ 500,000 6,000 bolts of denim 500,000 240 bolts of chenille 500,000 Total contribution $ 1,500,000
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