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 37 $ 65 $ 200 Maximus annual demand (units) 20,000 13,000 3e, eee Input requirement per unit Direct material 0.6 yards e. 2 yards 0.6 yards Direct labor 8.9 hours 2 hours 8 hours Costs Variable costs Materials Direct labor Factory overhead Marketing Annual fixed costs Manufacturing Marketing Administration $ 20 per yard $ 16 per hour $ 4 per direct labor-hour 10 % of sales price $52,000 $ 8,500 546,000 The company faces two limits (1) the volume of each type of shirt that it can sell (see maximum annual demand) and (2) 39,500 direct labor-hours per year caused by the plant layout Required: 2-1 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 18,000 more hours. The direct labor cost would increase from $16 to $18 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 D: RedD2 Red 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 $ 740.000 845,0006.300.000 Total variable costs 608.000 661.700 5.292,000 Contribution margin 42.000 $ 183,300 $1,008,000 Req A2 > $ Complete this question by entering your answers in the tabs below. RE Reg A1 Reg A2 Req B1 Red B2 Reqc ReqD2 Reg2 How much operating profit could the company earn if it were able to satisfy the annual demand? Operating proti 1,233,300 Reqai Req 81 > Reg A1 Reg A2 ReqB1 Req32 Rec Reg Di Rea 2 RE Compute the contribution margin for each shirt per the constrained resource, direct labor. (Do not found intermediate calculations. Round your final answers to 3 decimal places.) Class Formal Contribution margin Red Al Reg A2 Red B: Req B2 Reqc Reg D1 ReqD2 Reg ook Calculate the contribution margin for each type of dress shirt using the table below. Basic Classic Total revenue Lenas variable manufacturing costs: 0 Total costs Corting 05 Complete this question by entering your answers in the tabs below. REGAS Peg A2 Bao B Raq B2 Reg Rest Res 2 RE How much operating profit should your recommended product mix generate? Doeting rott RAI Req AZ Req B1 Req B2 Raq Di Reg 02 Reg E Suppose that the company could expand its labor capacity by running an extra shift that could provide up to 8,000 more hours. The direct labor cost would increase from $16 to $18 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 Austin thould manufacture Aditional prolt would be $ Complete this question by entering your answers in the tabs below. RE Reg A1 Reg A2 Req B1 Red B2 Reqc ReqD2 Reg2 How much operating profit could the company earn if it were able to satisfy the annual demand? Operating proti 1,233,300 Reqai Req 81 > Reg A1 Reg A2 ReqB1 Req32 Rec Reg Di Rea 2 RE Compute the contribution margin for each shirt per the constrained resource, direct labor. (Do not found intermediate calculations. Round your final answers to 3 decimal places.) Class Formal Contribution margin Red Al Reg A2 Red B: Req B2 Reqc Reg D1 ReqD2 Reg ook Calculate the contribution margin for each type of dress shirt using the table below. Basic Classic Total revenue Lenas variable manufacturing costs: 0 Total costs Corting 05 Complete this question by entering your answers in the tabs below. REGAS Peg A2 Bao B Raq B2 Reg Rest Res 2 RE How much operating profit should your recommended product mix generate? Doeting rott RAI Req AZ Req B1 Req B2 Raq Di Reg 02 Reg E Suppose that the company could expand its labor capacity by running an extra shift that could provide up to 8,000 more hours. The direct labor cost would increase from $16 to $18 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 Austin thould manufacture Aditional prolt would be
