6. Manufacturing workers went on strike at the end of 2010. Luxor maintains the same markup on variable costs as it did in 2010. Luxor is now constrained to 100,000 direct labor hours a year. Assume it takes the Company 3,000 direct labors hours to make $1 million in lipstick sales, 5,00 hours to get $1 million in nail polish sales, and 9,000 hours to make $1 million in cream sales. Note that the company cannot sell more than their 2011 Budgeted Sales. How many direct labor hours will the company use to make each product and what will be their total contribution margin? 7. Assume that in 2011, a Pharmacy chain offers to be the lone seller of Luxor's nail polish brand. In other words, all the nail polish that Luxor produces will be sold to this Company. To buy these exclusive rights, the Company will pay an amount that is 15% more than Luxor actually sold in 2010. However, the Company will require a few changes to the product resulting in increased variable costs to a total of $10.4 million. Luxor will also have to add an additional machine in order to meet the specications of the Company. What is the maximum amount that Luxor can pay for the machine and still accept the Company's special offer? (Hint: Assume that if Luxor does not accept, sales and costs in 2011 will be the same as 2010)