Chad Davis, vice president for operations at C&C Sports, is considering different strategies for managing the company's inventory. Earlier in the year, the company implemented a more systematic production schedule so that at the end of each month Finished Goods Inventory is 25% of the next month's anticipated sales. That strategy freed a lot of inventory space and improved the company's cash flow. However, Chad noticed that because of the seasonal nature of the purchases of all of the products, especially award jackets, the need for direct labor hours fluctuated widely from one month to the next. Even though Chad is able to hire workers as needed, he is concerned that eventually he wont be able to find skilled workers unless they are promised a more consistent schedule. For C&C Sports, labor and sewing machines are constrained resources. The company can produce as many of their products as they have people to make them. Chad gathered the following unit sales and cost information about each product. Pants Jerseys Jackets $12.00 $14.80 $125.00 $6.85 $44.72 14.40 7.92 10.08 $9.87 S11.17$77.12 $47.88 1.50 Sales price Direct materials Direct labor $4.47 2.40 1.92 1.05 1.35 Fixed overhead Total cost Gross profit Direct labor hours 1.68 $2.13 $3.63 20 C&C SPORTS Sales Forecast for 2017 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Annual Baseball pants 38,000 20,000 12,000 12,000 12,000 16,000 8,000 6,000 6,000 10,000 20,000 40,000 200,000 Baseball jersays 12,000 9,000 5,000 4,000 6,000 3,000 2,000 2,000 2,000 4,000 6,000 15,000 70,000 0 1,000 5,000 3,000 18,000 Award jackets 0 0 1,000 5,000 3,000 C&C SPORTS 4th Quarter Direct Labor Budget-All Products October November December4th Quarter Baseball pants (Exhibit 5-12) Baseball jrseys Award jackets Total direct labor hours 900 6250 1,650 3,125 19,250 5,400 9,875 3,000 7,025 10,9005 T9,000 33,650 3,000 3,000 15,725 Standard $ 9.60 9.60 9.60 9.60 9.60 Flows to wage rate Total direct labor cost budgeted COGS in $67,440 104,640 $150,960 $323,040 enie budget Flows to cash budget Claire Elliot, vice president for finance and administration, reminded him that a commission of 5% of the sales price and shipping costs of $0.40 per item should also be considered when analyzing different strategies. Calculate the contnbution margin per unit for ach preduct (Round answers to 2 decimal places, g. 52.75.) Contribution margin Pants Jernevs ackets Celculate the contribution mergin per drect Isber hour for eech product, (Round answers to 2 decimal places, e.g. 52.75) F C&C Sports chose to spread out production evenly throughout the year, how many direct labor hours would be raquired ach wask assuming the company operates all 52 weaks per year? Pants Direct labor hours DLH per week Jerseys Jeckets Lf the sales mix continues as budgeted in 2014-200,000 pants, 70.000 jerseys, and 18,000 jackets-how many direct labor hours ill be needed to preduce these units? Direct labor hours DLH DLH How many employees would be needed if operations ran two 8-hour shifts per day, 5 days per week? (Round ansiver to nearest whole numbera, e.g. 15.) Pants Jerseys Total number of employees Jackets Workers DLH DLH How many sewing machines would be needed if operations ran bro 8-hour shifts per day, 5 days per week? (Round ansiwer to nearest whole numbers, e.g. 15.) Number of seving machines