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4 Santana Rey has found that Business Solutions's line of computer desks and chairs has become very popular and she is finding it hard 10
4 Santana Rey has found that Business Solutions's line of computer desks and chairs has become very popular and she is finding it hard 10 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 Selling price per unit Variable costs per unit Contribution margin per unit Direct labor hours per unit Expected demand for next quarter 16 66 points Desks $1,466.00 420.00 $1,646.00 8 hours 175 desks Chairs 5671.50 299.00 $381.50 7 hours se chairs oo Santana has determined that she only has 1652 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 and the contribution margin the business will earn at that sales mix. (Round per unit amounts to 2 decimal places.) Desks Chairs Contribution per direct labor hour Desks Chairs Total 175 50 Marimum number of units to be sold Hours required to produce maximum units For most profitable sales mix Desks Chair Total 1.552 Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Totul contribution margin
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