Hi I need help with question 5 only, please give a detailed explanation .

only ques 5 I need help with Thank you.

This is my work so far, 1-4 are correct, I only need help with ques 5.

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: Product Demand Next Year (units) Selling Price per Unit 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. b. The direct labor rate of $16 per hour is expected to remain unchanged during the coming year. c. Fixed manufacturing costs total $520,000 per year. Variable overhead costs are $2 per direct labor-hour. d. All of the company's nonmanufacturing costs are fixed. e. The company's finished goods inventory is negligible and can be ignored. Required: 1. How many direct labor hours are used to manufacture one unit of each of the company's five products! 2. 3. 4. How much variable overhead cost is incurred to manufacture one unit of each of the company's live products? What is the contribution margin per direct labor-hour for each of the company's five products? Assuming that direct labor-hours is the company's constraining resource, what is the highest total contribution margin that the company can earn if it 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. 5. 6. - Direct LH -0.40 DLH - D 6.40 oH & per PLHO 2x. 40 = .80 T 4/16 : 0.25 DLH IS 11.2/16 = 0.70 DLH M 8/16 - 0.50 DLH Sh 3.0/16 = 0.20 DLH 2x.25 = .50 2x.10 1.4 2x.50 = 1 2+.20= 40 SP16, 10 157.50 | SK 9.60 -3.00pm -1.1 DM - 4.000L - SOM S26.60 M 4.00 - 6. 4400 - 200 - 11.2004 - 8DL - 4 month. 1 von 13. DOM 1.90CM 40 V 2.80 CM D5.20 cm %. 40 DLH 13 cm per on "1.250LH 7.56.0M 300M .70 DLH .60 DLH 4 7. 60CM per DLH 10.80CM X pox DLH 6.00CM per DLA DU 3 CM + 8 = 1 ASK 3.26 000.X.20 DLH: 65,00 ODLL'S 1 I D 50,000, X 40 PLH = 20000 DLH's IS 35,000,X 10 DLH = 24,500 T 42000 & 25 Dit = 10,500 M 20,000 4 X .50 DL = 10,00 O DLH'S - 130 DLH'S 15000X 14 010,000 20000 x 13 - 260,000 24500 x 1080 : 264,600 som = 1514400 10,500 X 7.66 5 79800 19000 6.00 = 60,ooo! NOE Sed or keptop TASOT panty nas asked you to make a recom . The following additional information a. The breakdown of the selling and administrative expenses that are shown above is as Selling expenses: Total North South Sales Sales Store