Adriana Lopez has found that her line of computer desks and chairs has become very popular and she is finding it hard to keep up with demand. She knows that she cannot fill all of her orders for both items, so she decides she must determine the optimal sales mix given the resources she has available. Information about the desks and chairs follows.

Adriana has determined that she only has 1,015 direct labor hours available for the next quarter and wants to optimize her contribution margin given the limited number of direct labor hours available.
Required
Determine the optimal sales mix for Adriana and the contribution margin she will earn at that salesmix.

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Desks Chalrs $375 500 200 $175 Direct labor hours per unlt ..5 hours 4 hours Expected demand for next quarter .-.....175 desks 50 chairs $1,125 Varlable costs per unlt . Contribution margin per unlt625