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Austin Enterprises makes and sells three types of dress shirts. Management is trying to determine the most profitable mix. Sales prices, demand, and use of manufacturing inputs follow. Sales price Maximum annual demand (unita) Input requirement per unit Direct material Direct labor Basic $ 32 28,000 $ classic 62 18,000 Formal $ 195 38,000 0.4 yards 0.8 hours 0.2 yards 2 hours 0.5 yards B hours $ $ Costa Variable costs Materials Direct labor Factory overhead Marketing Annual fixed costs Manufacturing Marketing Administration 22 per yard 16 per hour $ 4 per direct labor-hour 10 # of sales price $44,000 $12,000 $38,000 The company faces two limits: (1) the volume of each type of shirt that it can sell (see maximum annual demand) and (2) 56,000 direct labor-hours per year caused by the plant layout. Required: a-1. Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of dress shirt using the table below a-2. How much operating profit could the company earn if it were able to satisfy the annual demand? b-1. Compute the contribution margin for each shirt per the constrained resource, direct labor. b-2. Which of the three product lines makes the most profitable use of the constrained resource, direct labor? c. Given the information in the problem so far, what product mix do you recommend? d.1. Calculate the contribution margin for each type of dress shirt using the table below. d-2. How much operating profit ould your recommended product mix generate? e. Suppose that the company could expand its labor capacity by running an extra shift that could provide up to 14,000 more hours. The direct labor cost would increase from $16 to $17 per hour for all hours of direct labor used during the additional shift. What additional product(s) should Austin manufacture and what additional profit would be expected with the use of the added shift? Comnlete the Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Reg B1 Req B2 Reg C Reg Di Reg D2 Reg E Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of dress shirt using the table below Basic Classic Formal Total revenue Total variable costs Contribution margin $ o S $ 0 Req A2 > Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B1 Reg B2 Reg C Reg Di Reg D2 Reg E How much operating profit could the company earn if it were able to satisfy the annual demand? Operating profit Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B1 Reg B2 Reg C Reg D1 Reg D2 Req E Compute the contribution margin for each shirt per the constrained resource, direct labor. (Do not round intermediate calculations. Round your final answers to 3 decimal places.) Basic Classic Formal Contribution margin Reg A2 ReqB2 > Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B1 Reg B2 Reg C Reg D1 Reg D2 Req E Which of the three product lines makes the most profitable use of the constrained resource, direct labor? Classic Basic Formal Complete this question by entering your answers in the tabs below. Reg Al Reg A2 Reg B: Req B2 Reg C Reg Di Reg D2 Req Given the information in the problem so far, what product mix do you recommend? Classic and Basic Basic and Formal Classic and Formal Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Reg B1 Req B2 Reqc Reg Di Reg D2 ReqE Calculate the contribution margin for each type of dress shirt using the table below. Basic Classic Total revenue Loss variable manufacturing costs: 0 Total costs Contribution margin 0 S 0 Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B1 Reg B2 Reg C Reg 01 Reg D2 ReqE How much operating profit should your recommended product mix generate? Operating profit Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Req B1 Reg B2 Reg C Reg D1 Reg D2 Reg E Suppose that the company could expand its labor capacity by running an extra shift that could provide up to 14,000 more hours. The direct labor cost would increase from $16 to $17 per hour for all hours of direct labor used during the additional shift. What additional product(s) should Austin manufacture and what additional profit would be expected with the use of the added shift? (Round your final answer to 2 decimal places.) Show less Austin should manufacture Additional profit would be

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