Marwick Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a finishing process that can only be completed on machines that were recently purchased for this purpose. The machines have a maximum capacity of 10,500 machine hours, and no other products that the company makes use these machines. Sarah Jacob, the companys operations manager, is preparing the production schedule for the coming month and cant seem to find enough machine time to produce enough units to meet the customer demand that the marketing department has included in the sales budget. Michael Stoner, the companys controller, has gathered the following information about the two products:

		Dumbbell Rack		Weight Bench
Selling price per unit			$50				$60
Direct materials			20				12
Direct labor			6				12
Variable overhead			3				6
Fixed overhead			5				10
Profit per unit			$16				$20
Unit sales demand			5,000				8,000
Machine hours per unit			0.75				1.5

(a)

Correct answer icon

Your answer is correct.

Calculate the total number of machine hours needed to produce enough units to meet the sales demand for the two products.

Total number of machine hours

15750

(b)

Correct answer icon

Your answer is correct.

How should Sarah allocate the 10,500 available machine hours between the two products so that Marwick maximizes its profits?

		Machine Hours
Dumbbell Rack		3750
Weight Bench		6750

(c)

What total contribution margin will Marwick realize based on your answer to part (b)?

Total contribution margin

$enter the total contribution margin in dollars