Casual Essentials, Inc. manufactures two types of team shirts,
the Homerun and the Goalpost, with unit contribution margins of $11
and $15, respectively. Regardless of type, each team shirts must be
fed through a stitching machine to affix the appropriate team logo.
The firm leases seven machines that each provides 1,000 hours of
machine time per year. Each Homerun shirt requires 6 minutes of
machine time, and each Goalpost shirt requires 30 minutes of
machine time. Assume that there are no other constraints. Required:
If required, round your answers to the nearest whole number. If an
amount is zero, enter “0”. 1. What is the contribution margin per
hour of machine time for each type of team shirts? Contribution
Margin Homerun $ Goalpost $ 2. What is the optimal mix of team
shirts? Optimal Mix Homerun units Goalpost units 3. What is the
total contribution margin earned for the optimal mix? $

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