Integrated mix decision under labour constraint. Evergreen E…

Integrated mix decision under labour constraint. Evergreen Electronics has 20,000 hours of skilled labour available and makes two products: Alpha – CM $30 | Labour 2 hrs | Max 6,000 units; Beta – CM $22 | Labour 1 hr | Max 12,000 units. Fixed costs unchanged. Determine the optimal mix and total contribution margin.

Comprehensive incremental decision. Arctic Sportswear Ltd. m…

Comprehensive incremental decision. Arctic Sportswear Ltd. makes 20,000 jerseys: Sales $50 each; Variable cost $30; Fixed costs $350,000. A competitor offers to supply jerseys for $32 each. If accepted, 40% of fixed costs are avoidable, and the factory can be rented for $60,000 per year. Should Arctic make or buy?