Fabric And Fashion Case Study

Our analysis on producing velvet-textured-textured shirts did authorize Ted’s argument. The constituent moulding of the velvet shirts are $22.00 and the conduct is 6,000, which yields a keep gobble up profit of $132,000. This being slight than the fix damages of velvet During our analysis we found that simplifying the computer programming models into several manageable sections allowed us to address the independent coming back processes. Our teams determine the sideline region in brims in vermiform addition A by winning the difference of the total revenues and variant costs. Our team separated the silk blouse and camisole since they’re the only twain 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 business line object in appendix B did change since velvet is now considered a fix cost due to the jobber not accepting tonic velvet. This will result in the authorize contribution margin of some(prenominal) velvet bloomers ($136 + $36 = $172) and velvet shirts ($22 + $18=$40) to growing. The change in velvet’s contribution margin results in undeniable changes in the production plan as outline in appendix B.

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

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