Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5 Santana Rey has found that Business Solutions's line of computer desks and chairs has become very popular, and she is finding it hard to

image text in transcribed
image text in transcribed
5 Santana Rey has found that Business Solutions's 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. 3 selling price per unit Variable costs per unit Contribution nargin per unit Direct labor hours per unit Expected demand for next quarter Desks $1,379.75 440.00 $ 939.75 7 hours 126 deska Chairs $577.50 300.00 $277.50 6 hours 47 chairs eBook Santana has determined that she only has 1,430 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 corn at that soles mix. (Round per unit amounts to 2 decimal places.) Desks Chairs Contribution per direct labor hour Desks Chair Total 170 47 Maximum number of units to be sold Mourn required to produce maximum units For most profitable sales mix Deaks Chan Hours dedicated to the production of each product Total 14430 6 Santana has determined that she only has 1,430 direct labor hours available for the next quarter and wants to optimize her 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 amour decimal places.) 14.28 points eBook Desks Chairs Contribution per direct labor hour Desks Chairs Total 176 47 Maximum number of units to be sold Hours required to produce maximum units For most profitable sales mix Desks Chairs Total Hours dedicated to the production of each product 1,430 Units produced for most profitable sales mix Contribution margin per unit Total contribution margin

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managing Finance A Socially Responsible Approach

Authors: D. Crowther

1st Edition

0750661011, 978-0750661010

More Books

Students also viewed these Finance questions

Question

Prove that if x is a positive integer, then x2+x3=50

Answered: 1 week ago