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, Classic Basic 30 20,000 Sales price Maximum annual desand (units) Input requirement per unit Direct material Direct labor $ Formal $ 190 30.000 10,000 0.5 yards 0.7 hours 0.5 yards 2 hours 0.6 yards 7 hours Costs Variable costs Materials Direct labor Factory overhead Marketing Annual fixed costs Manufacturing Marketing Administration 5 $ $ 20 per yard 16 per hour 4 per direct labor.hour 10 X 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 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 shut using the table below 0-2. How much operating profit could the company ear 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 labore 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 $19 per hour for all hours of direct labor used during the additional shit. What additional product(s) should Austin manufacture and what additional profit would be expected with the use of the added shift? Reg A1 Reg A2 Req B1 Reg B2 Regc 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 Classic Formal Total revenue Total variable costs Contribution margin 540.000 524.000 5 (540,000) $ (524,000) & Regal Reg A2 > Complete this question by entering your answers in the tabs below. Req Al Req A2 Reg 81 Reg B2 Reqc Reg D1 Reg D2 Rege How much operating profit could the company eam if it were able to satisfy the annual demand? Operating profil Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg 1 Reg B2 Regc Reg D1 Reg D2 Rege 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.) Basic Classic Formal Contribution margin Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B1 Reg B2 Reg C 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.) Classic Total revenue Less variable manufacturing costs Basic Total costs Contribution margin 0 0 $ 0 profit would be expected with the use of the adde the additi Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Req B1 Reg B2 Reqc Reg Di Reg D2 Reg E How much operating profit should your recommended product mix generate? (Round down "Units produced to unit.) Operating profil Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Reg B1 Red B2 Reqc Reg D1 Reg D2 Rege Suppose that the company could expand its tabor 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 th 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
