Fabric And Fashion Case Study

Our analysis on producing velvet-texturedy-textured shirts did validate Ted’s argument. The constituent permissiveness of the velvet shirts are $22.00 and the demand is 6,000, which yields a keep rase profit of $132,000. This being less than the fix lives of velvet During our analysis we found that simplifying the programming models into several manageable sections allowed us to address the independent proceeds processes. Our teams determine the sideline ploughshare in margins in appendix A by winning the difference of the total revenues and protean 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 skirts and sweaters. We then made the observations score on our model in appendix A: The stemma plan in appendix B did change since velvet is now considered a fixed cost due to the interlocutor not accepting unused velvet. This will resul t in the net contribution margin of both velvet shorts ($136 + $36 = $172) and velvet shirts ($22 + $18=$40) to growing. The change in velvet’s contribution margin results in indispensable changes in the production plan as defined in appendix B.

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

If you want to get a full essay, visit our page: write my paper