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PLEASE ANSWER ALL PARTS Problem 10-25A Utilization of a Constrained Resource [LO10-5, LO10-6] The Walton Toy Company manufactures a line of dolls and a doll
PLEASE ANSWER ALL PARTS
Problem 10-25A Utilization of a Constrained Resource [LO10-5, LO10-6] The Walton Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the dolls is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data: Selling Direct Direct Demand Next year Price (units) per Unit Materials Labor Product 64,000 $22.00 $4.10 $3.20 Debbie 56,000 8.00 $2.50 $1.04 Trish 49,000 $38.50 $8.54 $5.60 Sarah 45,600 $13.00 $3.40 $4.00 Mike 339,000 9.40 $4.60 $0.64 Sewing kit The following additional information is available: a. The company's plant has a capacity of 105,700 direct labor-hours per year on a single-shift basis. The company's present employees and equipment can produce all five products. b. The direct labor rate of $8 per hour is expected to remain unchanged during the coming year c. Fixed costs total $525,000 per year. Variable overhead costs are $5 per direct labor-hour d. All of the company's nonmanufacturing costs are fixed e. The company's finished goods inventory is negligible and can be ignoredStep by Step Solution
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