Comfy Fit Company Makes Three Sizes of Shirts, Small, Medium

question 191

Essay

Comfy Fit Company makes three sizes of shirts, Small, Medium, and Large, on one assembly line that has a limit of 600 labor- hours per week. Comfy Fit Company can sell all the shirts it can make under current operating capacity. Manufacturing information per shirt for each product is as follows: $\begin{array}{llll}&\text { Small }& \text { Medium } & \text { Large }\\\text { Selling pric e } & \$ 8 & \$ 12 & \$ 15 \\\text { Variable costs } & 5 & 6 & 10 \\\text { Labor- hours per shirt } & 0.3 & 0.5 & 1.0\end{array}$ Requirements:
Determine the weekly contribution margin when all labor- hours are allotted to the product with the highest:
a. unit selling price.
b. unit contribution margin.
c. contribution per labor- hour.

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Definitions:

Positive Events

Occurrences or experiences that provoke a beneficial impact on one's emotions, well-being, or psychological state.

Negative Events

Unfavorable or harmful occurrences that can impact an individual's mental or physical well-being.

Stress Reaction

The body's response to a threat or challenge, which may involve physical, mental, or emotional changes.

Stressors

External stimuli or events that cause stress to an individual, potentially leading to physical or emotional strain.