Austin Enterprises makes and sells three types of dress shirts. Management is trying to determine the most profitable mix. Sales prices, demand, and use of manufacturing inputs follow Basic Classic Formal Sales price 65 210 Maximum annual demand (units) 26.000 16.000 36.000 input requirement per unit Direct material 0.5 yards 0.3 yards 0.5 yards Direct labor 0.9 hours 2 hours 8 hours Costs Variable costs 20 per yard Materials Direct labor 6 per hour Factory overhead 5 per direct labor-hour 10% of sales price Marketing Annual fixed costs $42,000 Manufacturing Marketing $11,000 $36,000 Administration The company faces two limits: (1) the volume of each type of shirt that it can sell (see maximum annual demand) and (2) 50.000 direct labor-hours per year caused by the plant layout Required a-1. Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of dress shirt using the table below Classic Total revenue 936,000 040,000 7.560.000 Total variable costs 845.000 872,000 7,164,000 S 91,000 168,000 S 396,000 Contribution margin a-2. How much operating profit could the Company earn if it Were able to satisfy the annual demand? Operating profit 566,000