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 $ 30 20,000 Classic 564 20,000 Formal 5190 30,000 Sales price Haxinn annual demand (units) Input requirement per unit Direct material Direct labor 0.5 yards 0.7 hours 0.3 yards 2 hours 0.6 yards 7 hours Costs Variable costs Materials Direct labor Factory overhead Marketing Annual fixed costs Hanufacturing Marketing Administration 5 20 per yard 5 16 per hour 5 4 per direct labor-hour 10 % of sales price $36,000 $ 8.000 $30,000 The company faces two limits (1) the volume of each type of shirt that it can sel (see maximum annual demand) and (2) 30,000 direct labor-hours per year caused by the plant layout The company faces two limits (1) the volume of each type of shirt that it can sell (see maximum annual demand) and (2) 30,000 direct labor-hours per year caused by the plant layout Required: 0-1 Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of dress shirt using the table below 0-2. 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 10,000 more hours. The direct labor cost would increase from $16 to 519 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. Reg A1 Reg A2 Req B1 Req B2 Reqc Reg Di Reg D2 Reg E Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of dress shirt using the table below Basic ciste Total revenue Total variable costs Contribution margin $ 0 $ 0 $ EL Req A2 > the additional shift. What addit Ional profit would be expected with the use of the added shift? Complete this question by entering your answers in the tabs below. RegE Req A1 Req AZ Req B1 Reg 82 Reqc Reg D1 Reg D2 How much operating profit could the company cam if it were able to satisfy the annual demand? Operating profil Whdlade prohit 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 B2 ReqC Reg D1 Reg D2 ReqE 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.) Basie Classic Formal Contribution margin nal shift. W be expected with the use of the added shift? Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B1 Reg B2 Reqc Reg DI Reg D2 Which of the three product lines makes the most profitable use of the constrained resource, direct labor? ReqE Classic Basic O Formal Req B1 Reqc > By entering your answers in the tabs below. Reg A1 Reg A2 Req B1 Req B2 Reqc Reg D1 Reg D2 Given the information in the problem so far, what product mix do you recommend? Red E Classic and Basic Basic and Formal Classic and Formal Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B1 Req B2 Reqc Reg Di Reg D2 Rege Calculate the contribution margin for each type of dress shirt using the table below. (Round down "Units produced" to nearest whole unit.) Hasit hinsic Total revenue Less variable manufacturing costs Total costs Contribution margin 0 0 0 0 Complete this question by entering your answers in the tabs below. Sk at Reg A1 Req A2 Req B1 Req 82 ces Regc Reg D1 Reg D2 Reg E Suppose that the company could expand its labor capacity by running an extra shift that could provide up to 10,000 more hours. The direct labor cost would increase from $16 to $19 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 down "Units produced" to nearest whole number and final answer to 2 decimal places.) Show less Austin should manufacture Additional profit would be
