Texteriles Company creates different types of bolts of cloth. These bolts of cloth are made on the same machinery. The textilemachines 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 of6,000 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 ofmachine 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?Combination of Productsbolts of gauzebolts of denimbolts of chenilleTotal contributionContribution$0

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What combination of products will maximize the profits of Texteriles? Combination of Products bolts of gauze bolts of denim bolts of chenille Total contribution Contribution $ 0

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...

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Question

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?
Combination of Products
bolts of gauze
bolts of denim
bolts of chenille
Total contribution
Contribution
$
0

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