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Answer all questions. Thanks 2402-5017 (8193)-Spring 2018 Chapter 12 Homework Question 3 (of 3) value: 5.00 points The Walton Toy Company manufactures a line of
Answer all questions. Thanks
2402-5017 (8193)-Spring 2018 Chapter 12 Homework Question 3 (of 3) value: 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 Selling Next year Price Direct Direct (units) per Unit Materials Labon $3.60 54,000 7.00 $2.30 $1.32 $7.20 $4.80 337,000 9.20 $4.40 $0.72 Product Debbie Trish Sarah Mike Sewing kit 62,000 $20.50 $5.50 47,000 $34.00 $8.24 56,000 $15.00 $3.20 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 $640,000 per year. Variable overhead costs are $3 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 ignoredStep by Step Solution
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