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5.00 points The Walton Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the dolls is increasing, and management
5.00 points The Walton Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the dolls is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data Demand Next year Selling Direct Labor Price Direct Product Materials $5.50 $2.30 $8.24 $3.20 $4.40 (units)per Unit Debbie Trish Sarah Mike Sewing kit 62,000 54,000 47,000 56,000 337,000 S20.50 S 7.00 34.00 $15.00 S9.20 $3.60 $1.32 $7.20 $4.80 0.72 The following additional information is available a. The company's plant has a capacity of 84,160 direct labor-hours per year on a single-shift basis. The company's present employees and equipment can produce all five products b. The direct labor rate of $12 per hour is expected to remain unchanged during the coming year. c. Fixed costs total S640,000 per year. Variable overhead costs are S3 per direct labor-hour. d. All of the company's nonmanufacturing costs are fixed e. The company's finished goods inventory is negligible and can be ignored
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