Adria Lopez has found that her 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.

	Desks			Chairs
Selling price per unit	$	1,125		$	375
Variable costs per unit		500			200
Contribution margin per unit	$	625		$	175
Direct labor hours per unit		5	hours		4	hours
Expected demand for next quarter		175	desks		50	chairs

Adria has determined that she only has 1,015 direct labor hours available for the next quarter and wants to optimize her contribution margin given the limited number of direct labor hours available.

Determine the optimal sales mix and the contribution margin the business will earn at that sales mix (***fill in chart below***):

	Desks	Chairs
1) See A	3)	6)
2) See B	4)	7)
Contribution per direct labor hour	5)	8)
	Desks	Chairs	Totals
Maximum number of units to be sold	175	50	11)
Hours required to produce maximum units	9)	10)	12)
For most profitable sales mix
	Desks	Chairs	Total
Hours dedicated to the production of each product	13)	14)	1015
Units produced for most profitable sales mix	15)	18)
Contribution margin per unit	16)	19)
Total contribution margin	17)	20)	21)

A: Options for answer: Contribution margin per unit, fixed costs, income taxes, net income, sales, total production hours avaliable, or variable costs-- Choose one

B: Options for answer: Contribution margin per unit, fixed costs, income taxes, net income, sales, total production hours avaliable, or variable costs-- Choose one