Barker Wood Company makes a regular and a deluxe grade of wood oors. Regular grade is sold at $13 per square yard, and the deluxe grade is sold at $27 per square yard. The variable cost of making the regular grade is $7 per square yard. It costs an extra $7 per square yard to make the deluxe grade. It takes 15 labor hours to make 100 square yards of the regular grade, and 20 labor hours to make 100 square yards of the deluxe grade. There are 4,300 hours of labor time available for production each week. The maximum weekly sales for the regular and the deluxe model are 40,000 and 8,000 square yards, respectively. Fixed production costs total $450,000 per year. All selling costs are xed. Requirement What is the optimal production level in number of square yards for each product? Begin by calculating the contribution margin per direct labor hour for each product grade. (Abbreviations used: DLH = Direct labor hour) Regular Deluxe :: ;; :: ;; Contribution margin per DLH What is the optimal production level in number of square yards for each product? Barker Wood Company should produce |:| square yards of the first and then use the remaining available capacity to produce |:| square yards of the Barker Wood Company makes a regular and a deluxe grade of wood oors. Regular grade is sold at $13 per square yard, and the deluxe grade is sold at $27 per square yard. The variable cost of making the regular grade is $7 per square yard. It costs an extra $7 per square yard to make the deluxe grade. It takes 15 labor hours to make 100 square yards of the regular grade, and 20 labor hours to make 100 square yards of the deluxe grade. There are 4,300 hours of labor time available for production each week. The maximum weekly sales for the regular and the deluxe model are 40,000 and 8,000 square yards, respectively. Fixed production costs total $450,000 per year. All selling costs are xed. Requirement What is the optimal production level in number of square yards for each product? Begin by calculating the contribution margin per direct labor hour for each product grade. (Abbreviations used: DLH = Direct labor hour) Contribution margin per square yard l;| |;| Fixed costs per DLH :l :l l _ yards for each product? Fixed costs per square yard I s of the first and then use the Sales price per square yard I s of the DLH required per square yard Variable cost per square yard m