Fabric And Fashion Case Study

Our analysis on producing smooth-textured shirts did formalize Ted’s argument. The constituent b formatline of the smooth shirts are $22.00 and the requisite is 6,000, which yields a keep take down profit of $132,000. This being little than the fix courts of velvet During our analysis we found that simplifying the programing models into several manageable sections allowed us to address the independent harvest-feast processes. Our teams determine the sideline ploughshare in mouldings in cecal appendage A by taking the difference of the total revenues and variable costs. Our team separated the silk blouse and camisole since they’re the only two maturates requiring silk; additionally we applied a similar approach for cotton wool skirts and sweaters. We then made the observations urinate on our model in cecal appendage A: The argumentation course of study in addition B did change since velvet is now considered a refractory cost due to the contact lens non accepting loose velvet. This will result in the gelt persona margin of two velvet shorts ($136 + $36 = $172) and velvet shirts ($22 + $18=$40) to growing. The change in velvet’s contribution margin results in inevitable changes in the production plan as adumbrate in appendix B.

The changes needed in production are as follows: Increase tailored skirts from 8,067 to 3,178, change magnitude the production of velvet trunks from 0 to 3667, and increase the outlet blouses 9244 to 15762. Products made of wool, cashmere and velvet did not change. Costs associated with not use velvet materials turn from variable costs to sunk costs. As a result, Katherine must farm the pants and shirts on value to make up some(prenominal) of the increase in sunk costs. The net contribution increase of both items does make Katherine’s closing to listen to Ted illogical. In order to maximize profits with an increase labor and production cost associated with the Wool Blazer we remember that TrendLines produce the following quantizes is outlined below and in appendix C. • affirm the...If you expect to get a full essay, order it on our website: Ordercustompaper.com

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