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Lyve Co. produces two product lines. Prices/costs per unit follow. Beta Delta Selling price $60 $45 Direct material $16 $12 Direct labor ($20/hour) $15 $10
Lyve Co. produces two product lines. Prices/costs per unit follow. Beta Delta Selling price $60 $45 Direct material $16 $12 Direct labor ($20/hour) $15 $10 Variable overhead $12 $8 Demand for Beta is 249 units and Delta is 304 units Lyve Company has only 176 labor hours available Given the constrained resource, what is the maximum contribution margin the company can attain if it uses the optimal sales mix? Round only your final answer to the nearest dollar. Part T2 is used in one of Rod Corporation's products. The company's Accounting Department reports the following costs of producing the 12,000 units of the part that are needed every year. Direct Materials $4.53 Direct labor $1.00 Variable overhead $2.02 Supervisor's salary $3.54 Depreciation of special equipment $2.65 Allocated general overhead $1.93 An outside supplier has offered to make the part and sell it to the company for $14.47 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $5294 of these allocated general overhead costs would be avoided. What is the relevant TOTAL cost (NOT per unit) to make the part? Round only your final answer to the nearest dollar and enter as a positive number (no sign). Do not round intermediate calcuations
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