For Ques. 5 please show me how to solve with detailed explanation. I thought it was 6+8=14, however I'm told the correct answer is 22. What is the correct way to solve this?

The question corresponds to the question, this is the correct question.

PROBLEM 11-25 Volume Trade-Off Decisions LO11-5, LO11-6 The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's prod- ucts 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: Demand Next Year (units) Selling Price per Unit Product Direct Materials Direct Labor . . Debbie. Trish. Sarah Mike... Sewing kit.. 50,000 42,000 35,000 40,000 325,000 $16.70 $7.50 $26.60 $14.00 $9.60 $4.30 $1.10 $6.44 $2.00 $3.20 $6.40 $4.00 $11.20 $8.00 $3.20 . The following additional information is available: a. The company's plant has a capacity of 130,000 direct labor-hours per year on a single-shift basis. The company's present employees and equipment can produce all five products. . The direct labor rate of $16 per hour is expected to remain unchanged during the coming year. 2. Fixed manufacturing costs total $520,000 per year. Variable overhead costs are $2 per direct labor-hour. 1. All of the company's nonmanufacturing costs are fixed. e. The company's finished goods inventory is negligible and can be ignored. 5. Lumuy call makes optimal use of its constrained resource? Assuming that the company has made optimal use of its 130.000 direct labor-hours, what is the highest direct labor rate per hour that Walton Toy Company would be willing to pay for additional capacity (that is, for added direct labor time)? Identify changes that the company could make to enable it to satisfy the customers' demand for all of its products