ACCT 225 - Managerial Accounting Case Assignment 2 Part 4-C: Using a constrained resource (10 marks) Due to the world-wide pandemic (COVID 19). Dynamadics has been struggling to secure a reliable source for the high quality leather required to produce its designer women's shoes. Additionally, in some regional operations, employees have been unable to work due to illness or quarantine protocols. Thankfully, no employees have become critically ill as a result of COVID19, The selling price, variable costs and contribution margin for each of three specific types of shoes and additional operational information is presented below: Runway 151.00 Product Princess 215.00 Comfort 209.00 Selling Price Less Variable costs Direct Material Direct Labour Other Variable costs Total variable costs Contribution margin 26.78 16.22 76.20 119.20 $31.80 109.99 16.10 37.00 163.09 $51.91 82.65 15.91 70.50 169.06 $39.94 - The high quality leather that is in short supply is used to produce all three types of shoes, - Dynamadics has only 12,000 kilograms of the leather on hand and is unable to secure any additional leather for a number of weeks Direct Labour costs are as follows on a per hour basis 26.00 Leather costs per kilograms are: 4.00 The owners have asked managers to determine which type of shoes to focus on to meet existing customer demands given the current operational constraints. To provide a response to the owners, the managers have asked you to provide analysis as outlined below. Assume that the leather and direct labour constraints are independent of each other and analyze each constrained resource separately. Requirement: 1. What is the contribution margin per kilogram of leather for each type of shoe? 2. Which shoe type should Dynamadics produce? Provide an explanation to the managers to support their understanding of your analysis and your recommendation Considering the direct labour supply problem: 3. What is the contribution margin per direct labour hour for each type of shoe? 4. Which shoe type should Dynamadics produce? Provide an explanation to the managers to support their understanding of your analysis and your recommendation Note: Use 2 decimal places in presenting your results