mba642exercise 14-45

mba642exercise 14-45 - Exercise 14-45 Data: Golden Gates...

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Exercise 14-45 Data: Golden Gates Fashions, Inc., a high-fashion dress manufacturer, is planning to market a new cocktail dress for the coming season. Golden Gate Fashions supplier retailers primarily on the west coast. Four yards of material are required to lay out the dress pattern. Some material remains after cutting, which can be sold as remnants. The leftover material also could be used to manufacture a matching handbag and an accessory cape to be worn about the shoulders. However, if the leftover material is to be used for the cape and handbag, more care will be required in the cutting operation, which will increase the cutting costs. The company expects to sell 1,250 dresses. Market research reveals that dress sales will be 20 percent higher if a matching cape and handbag are available. The market research indicates that the cape and handbag will be salable only as accessories with the dress. The combination of dresses, capes and handbags expected to be sold by retailers is as follows:
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This note was uploaded on 11/13/2011 for the course MBA 642 taught by Professor Jamesstephens during the Summer '11 term at Bellevue.

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