4 Lttle Toy Company makes and seils miniature doll houses. Little produces two kinds of houses Standard and Deluxe. The demand for doll houses is highest In November and December. Expecting this trend to continue LUttle is interested in how to best utlize available capacity. Given the following information, what combination of doll houses should Little produce? Standard Deluxe 8,000 3,000 Demand Unit Price Unit variable cost Unit contribution margin Production rate (units per hour) Available production hours Total fixed costs $60 $35 $25 SAS $45 5,000 hrs $40,000 A. 8,000 Standard; 3,000 Deluxe. 8,000 Standard; 1,000 Deluxe. 5,000 Standard; 3,000 Deluxe. D. 3,636 Standard; 7,364 Deluxe E. 3,636 Standard; 1,363 Deluxe. LO4-B 65. The general rule to apply to maximize profit when capacity is In short supply is A Minimize the contribution margin per unit of capacity. B. Maximize the margin of safety per unit of capacity C. Maximize the contribution margin per unit of capacity D. Minimize the margin of safety per unit of capacity. E. Maximize the unit contribution margin. 66. Handi-Tool Company manufactures and sells lawn and garden tools. Handi manufactures three s of pruning shears: Snip-It, Deluxe Clipper, and Limb-Away. The demand for the pruning shears is highest in April. Expecting this trend to continue, Handil is interested in how to best utilize available capacity. Given the following information, what combination of pruning shears should Handi-Tool produce? Demand Unit Price Unlt variable cost Unit contribution margin Production rate (units per hour) Available production hours Total fixed costs Deluxe Limb- Snip-It Clipper Away 200,000 100,000 60,000 $50 $20 $30 15 8,000 hrs $400,000 $20 $30 $10 $15 $10 $15 25 50 200,000 Snip-it; 100,000 Deluxe Clipper, O LUmb-Away 200,000 Snip-it; 60,000 Limb-Away: 0 Deluxe Clipper 100,000 Deluxe Clipper; 60,000 Umb-Away; O Snip-it. D. 200,000 Snip-It; 100,000 Deluxe Clipper; 60,000 Umb-Away E. 150,000 Snlp-It;75,000 Deluxe Clipper; 45,000 Limb-Away LO4-B