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*** NO SOLUTION STEPS ARE REQUIRED. JUST THE ANSWERS *** Demand for the dolls and doll dress sewing lets manufactured by RoseMarie Limited is increasing,
*** NO SOLUTION STEPS ARE REQUIRED. JUST THE ANSWERS ***
Demand for the dolls and doll dress sewing lets manufactured by RoseMarie Limited is increasing, and management requests assistance from you in determining the best sales and production mix for the coming year. The company has provided the following data: The following additional information is available: a. The company's plant has a capacity of 112.600 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 of $12.00 per hour is expected to remain unchanged during the coming year. c. Fixed costs total $416,000 per year, variable overhead costs are $2.00 per direct labour-hour. d. All of the company's non-manufacturing costs are fixed. e. The company's finished goods inventory is negligible and can be ignored. Required: Determine the contribution margin per direct labour-hour expended on each product (the profitability index). Prepare a schedule showing the total direct labour-hours that will be required to produce the units est mated to be sold during the coming year. What is the highest price, in terms of a rate per hour, that RoseMane should be willing to pay for additional capacity (that is. for added direct labour time)Step by Step Solution
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