High School

Cullumber's Wind Toys manufactures decorative kites, banners, and windsocks. During January, Cullumber received orders for 4,000 Valentine's Day banners and 1,200 Easter kites. However, due to several sewing machines being in the shop for repairs, Cullumber has only 1,100 sewing machine hours available for production.

Each Valentine's Day banner:
- Sells for $11.00
- Takes 1 hour to sew
- Has a total variable cost of $9.00

Each Easter kite:
- Sells for $18.00
- Takes 30 minutes (0.5 hours) to sew
- Has a total variable cost of $15.00

(a) With only 1,100 sewing machine hours available, how many units should Cullumber produce for the following items?

- Kites
- Banners

Based on your calculations, which product should Cullumber prioritize for production in January?

Answer :

(a) Cullumber's should produce 1,100 Valentine's Day banners and 2,200 Easter kites in January.

(b) They should prioritize the production of Easter kites due to their higher profitability.

To determine how many units of kites and banners Cullumber's Wind Toys should produce with the available sewing machine hours, we need to calculate the production time required for each product.

For the Valentine's Day banners:
- Each banner takes one hour to sew.
- With 1,100 sewing machine hours available, Cullumber's can produce 1,100 banners.

For the Easter kites:
- Each kite takes 30 minutes to sew, which is equivalent to 0.5 hours.
- To find the number of kites that can be produced with the available sewing machine hours, we divide 1,100 by 0.5, giving us 2,200 kites.

Therefore, Cullumber's Wind Toys should produce:
- 1,100 Valentine's Day banners
- 2,200 Easter kites

Now, let's consider the profitability of each product to determine which one Cullumber's should prioritize for production in January.

For the Valentine's Day banners:
- Each banner sells for $11.00.
- The total variable cost per banner is $9.00.
- Therefore, the contribution margin per banner is $11.00 - $9.00 = $2.00.

For the Easter kites:
- Each kite sells for $18.00.
- The total variable cost per kite is $15.00.
- Therefore, the contribution margin per kite is $18.00 - $15.00 = $3.00.

Based on the contribution margins, Cullumber's should prioritize the production of Easter kites in January, as they generate a higher contribution margin per unit compared to the Valentine's Day banners.

In summary, Cullumber's should produce 1,100 Valentine's Day banners and 2,200 Easter kites in January. They should prioritize the production of Easter kites due to their higher profitability.

To know more about profitability refer here: https://brainly.com/question/29987711#

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