Problem: Trailblazers produces two types of hiking boots: the men's boot and the women's boot. The two types of boots are similar except that the women's boots are more stylish. Both types are made using the same machines. It takes 15 minutes if machine time to produce one pair of men's boots, whereas it takes 30 minutes of machine time to produce one pair of women's boots. The difference in production time results mainly from the different materials used in construction. The relevant data concerning the two types are follows:
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 hours 1/2 hour
Required:
Q1. If the amount of machine time available to Trailblazers is limited, which boots should be produced first?
Q2. If the total machine time available is 640 hours per month and the demand for each type of boot is 1,000 pairs per month, low many of each type should be produced to maximize profit? (Round your answer to the nearest pair.)
Q3. What other factors should be considered in this decision, and how would they impact the decision?