Check Problem 12-25 Volume Trade-off Decisions (L012-5, LO12-6] The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's products is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data: Product Debbie Trish sarah Nike Sewing kit Demand Next Selling year Price Direct (units) per Unit Materials 52.000 $17.00 $4.50 44,000 $5.50 1.30 37,000 $20.00 56.74 40,800 $12.00 52.20 327,000 $ 3,20 3.40 Direct Labor $ 2.80 $ 1.40 $4.90 $ 3.50 $ 1.05 The following additional information is available: a. The company's plant has a capacity of 114,750 direct labor hours per year on a single-shift basis. The company's present employees and equipment can produce all five products b. The direct labor rate of 57 per hour is expected to remain unchanged during the coming year c. Fixed manufacturing costs total $540,000 per year. Variable overhead costs are 54 per direct labor-hour d. All of the company's nonmanufacturing costs are fixed. e. The comoan's finished goods inventory is nealiable and can be anored.