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Fact Pattern: Bakker Industries sells three products (Products 611, 613, and 615) that it manufactures in a factory consisting of one department. Both labor and
Fact Pattern: Bakker Industries sells three products (Products 611, 613, and 615) that it manufactures in a factory consisting of one department. Both labor and machine time are applied to the products. Bakker's management is planning its production schedule for the next several months. There are labor shortages in the community. Some of the machines will be out of service for extensive overhauling. Available machine and labor time for each of the next 6 months is listed below. Monthly Capacity Availability Normal machine capacity in machine hours 3,500 Capacity of machines being repaired in machine hours (500) Available machine capacity in machine hours 3,000 Labor capacity in direct labor hours Available labor in direct labor hours Labor and Machine Specifications per Unit of Product 4,000 3,700 Product Labor and Machine Time 611 Direct labor hours 2 Machine hours 2 613 Direct labor hours 1 Machine hours 1 615 Direct labor hours 2 Machine hours 2 The Sales Department's forecast of product demand over the next 6 months is presented below. Product Monthly Sales Volume (in units) 611 500 613 400 615 1,000 Bakker's inventory levels will not be increased or decreased during the next 6 months. The unit price and cost data valid for the next 6 months are presented below. Product 611 613 615 Unit costs: Direct material $ 7 $ 13 $ 17 Direct labor 12 6 12 Variable overhead 27 20 25 Fixed overhead 15 10 32 Variable selling 3 2 4 $167 Unit selling price $196 $123 Question: 111f Bakker's strategy is to maximize total profits, what is the total contribution
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