Response to the following problem:
Trailblazers produces two types of hiking boots: the mens boot and the womens boot. The two types of boots are similar, except that the womens boots are more stylish. Both types are made with the same machine. It takes 15 minutes of machine time to produce one pair of womens boots. The difference in production time results mainly from the different materials use in construction.
The relevant data concerning the two types of boots are as follows:
Mens Womens 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 hour 1/2 hour
A. If the amount of machine time available to Trailblazers is limited, which boot should be produced first?
B. 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, how many of each type should be produced to maximize profit? (Round your answer to the nearest pair.)
C. What other factors should be considered in this decision, and how would they affect the decision?