Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help :( Santana Ray has found that Business Solution's line of computer desks and chairs has become very popular... 23 Homework Saved Help Save &

help :(
Santana Ray has found that Business Solution's line of computer desks and chairs has become very popular... image text in transcribed
image text in transcribed
23 Homework Saved Help Save & Exit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to Serial Problem Business Solutions LO A1 Santana Rey has found that Business Solutions's line of computer desks and chairs has become very popular. and she is finding it hard to keep up with demand. She knows that she cannot fill all of her orders for both items, so she decides she must determine the optimal sales mix given the resources she has available. Information about the desks and chairs follows. Desks Chairs Selling price per unit $1,111.ee $289.80 Variable costs per unit 590.00 130.00 Contribution margin per unit $ 521.00 $159.00 Direct labor hours per unit 4 hours 3 hours Expected demand for next quarter 170 desks 47 chairs Santana has determined that she only has 788 direct labor hours available for the next quarter and wants to optimize her contribution margin given the limited number of direct labor hours available Required: Determine the optimal sales mix and the contribution margin the business will earn at that sales mix (Round per unit amounts to 2 decimal places.) Answer is not complete. Prev Noxt RI to search o pleted so far. It does not indicate com 1 Answer is not complete. Total 821 Desks Chairs Sales x S 1,111.00 $ 289.00 Variable costs 590 X 130 Contribution per direct labor hour $ 521.00 $ 159 00 % Desks Chairs Maximum number of units to be sold 170 47 Hours required to produce maximum units 680 141 The company does not have enough hours to fill maximum demand. For most profitable sales mix Desks Chairs Hours dedicated to the production of each 680 108 product Produce most profitable units until the market demand has been satisfied. 170 36 Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Total 788 Prey 1 of 1 Next N o here to search RA

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Taxpayers Rights Before During And After The Tax Audit In Cameroon

Authors: Salomon Malang II

1st Edition

6205877058, 978-6205877050

More Books

Students also viewed these Accounting questions