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23. Grammy Girl Products (GGP) has two divisions, Wood and Furniture, both of which usually have independence in sourcing and pricing decisions. There is a
23. Grammy Girl Products (GGP) has two divisions, Wood and Furniture, both of which usually have independence in sourcing and pricing decisions. There is a limit of wood available. The Wood Division only has 200,000 board feet of lumber available for transferring to the Furniture Division. The Furniture Division can make and sell any number of either dressers or hutches. Information on these two choices follow: Dressers $200 Hutches $300 Sales Price per unit Costs to manufacture: Direct Materials Direct Labor Variable Overhead Fixed Overhead 60 50 20 30 120 70 30 50 Wood required per completed unit 20 bd ft 30 bd ft To maximize profits for the company, Grammy Girl Products should make and sell: A. 10,000 dressers B. 6,666 hutches C. 5,000 dressers and 3,333 hutches D. 5,000 dressers and 5,000 hutches E. None of the choices are correct
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