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. Sales price Maximum annual demand (units) Input requirement per unit Direct material Direct labor Costs $ Basic 32 27,000 $ Classic 60 17,000 $ Formal 165 37,000 0.6 yards 0.2 yards 0.7 hours 2 hours 0.6 yards 7 hours Variable costs Materials $ 21 per yard Direct labor $ 15 per hour Factory overhead $ 3 per direct labor-hour Marketing 10 % of sales price Annual fixed costs Manufacturing Marketing $43,000 $11,500 Administration $37,000 The company faces two limits: (1) the volume of each type of shirt that it can sell (see maximum annual demand) and (2) 48,000 direct labor-hours per year caused by the plant layout. Required: 6-1. Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of dress shirt using the table below a-2. How much operating profit could the company earn if it were able to satisfy the annual demand? b-1. Compute the contribution margin for each shirt per the constrained resource, direct labor. b-2. Which of the three product lines makes the most profitable use of the constrained resource, direct labor? c. Given the information in the problem so far, what product mix do you recommend? d-1. Calculate the contribution margin for each type of dress shirt using the table below. d-2. How much operating profit should your recommended product mix generate? e. Suppose that the company could expand its labor capacity by running an extra shift that could provide up to 13,500 more hours. The direct labor cost would increase from $15 to $17 per hour for all hours of direct labor used during the additional shift. What additional product(s) should Austin manufacture and what additional profit would be expected with the use of the added shift? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req 82 Req C Req D1 Req D2 Req E Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of dress shirt using the table below Basic Classic Formal Total revenue Total variable costs Contribution margin $ 0 $ 0 Req A2> Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E How much operating profit could the company earn if it were able to satisfy the annual demand? Operating profit Complete this question by entering your answers in the tabs below. Req Al Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Compute the contribution margin for each shirt per the constrained resource, direct labor. (Do not round intermediate calculations. Round your final answers to 3 decimal places.) Contribution margin Basic Classic < Req A2 Formal Req B2 > Re Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Which of the three product lines makes the most profitable use of the constrained resource, direct labor? Classic Basic Formal < Req B1 Req C > Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B11 Req B2 Req C Req D1 Req D2 Req E Given the information in the problem so far, what product mix do you recommend? OClassic and Basic OBasic and Formal Classic and Formal < Req B2 Req D1 > Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Calculate the contribution margin for each type of dress shirt using the table below. Total revenue Less variable manufacturing costs Basic Classic Total costs Contribution margin $ 0 $ 0 Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E How much operating profit should your recommended product mix generate? Operating profit < Req D1 Req E > Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Suppose that the company could expand its labor capacity by running an extra shift that could provide up to 13,500 more hours. The direct labor cost would increase from $15 to $17 per hour for all hours of direct labor used during the additional shift. What additional product(s) should Austin manufacture and what additional profit would be expected with the use of the added shift? (Round your final answer to 2 decimal places.) Show less A Austin should manufacture: Additional profit would be