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Problem 9-6 Utilizing a Constrained Resource (LO2.CC7, 8) - EDITED Soft and Cuddly Friends (SCF) produces soft dolls. Demand for the dolls is increasing, and management wants you to identify an economical sales and production mix for the coming year. The following information is available! Softy Friendly Goody Besty Love Demand (units) 34,000 70,000 53,000 67,200 119,600 Price per unit $45.00 $ 33.00 $ 35.00 $23.00 $31.00 Variable costs: Direct materials 4.50 3.70 7.10 5.30 3.30 Direct Labour 7.60 4.75 13.30 9.50 3.00 The following additional information is available a. The company's plant has a capacity of 120,000 direct labour hours per year on a single shift basis. The company's present employees and equipment can produce all five products b. The direct labour rate is $19 per hour, this rate is expected to remain unchanged during the coming year c. Fixed manufacturing costs amount to $820.000 per year. Variable overhead costs are 56 per direct about hour d. All of the compenys sales and administrative costs are fiec Required: 1. How mony direct about houts per unit will be required to produce the uns estimated to be sold out in the coming year? Show your Roundur Required: 1. How many direct labour hours per unit will be required to produce the units estimated to be sold during the coming year? Show your computations. (Round your answers to 2 decimal places.) Softy Filendly Goody Besty Lovey DLH Per Unit 0.40 0.25 0.70 050 0.20 nes 2. Keeping in mind the direct labour-hour capacity, what should be the company's product mix for the upcoming year? Prepare a schedule in support of your recommendation (Round "Per Unit" to 2 decimal places.) Product Direct Labour Hour Per Unit Total Hours Softy Friendly Goody Besty Llovey Total hours required 0.40 hours 0 25 hours 0.70 hours 0.50 hours 0.20 hours Estimated Sales (Units) 84.000 70,000 58.800 7.640 119.600 33 600 17.500 41,160 3.820 23.920 120,000 3. Assume again that the company does not want to reduce sales of any product, Identity ways the company could obtain the additional output (You may select more than one answer. Single click the box with the question mark to produce a check mark for o correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded os incorrect.) Adding another site 2 Contracting out some work to outside Suppliers Ence 2 Employing additional inbour force 2 Exponding the worldorce 2 Eminating word labour in the production process 2 utilizing the red capacity 2 Working over