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Please answer number 4 . The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's products is increasing,
Please answer number The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's products 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:
The following additional information is available:
a The company's plant has a capacity of direct laborhours per year on a singleshift basis. The company's present employees
and equipment can produce all five products.
b The direct labor rate of $ per hour is expected to remain unchanged during the coming year.
c Fixed manufacturing costs total $ per year. Variable overhead costs are $ per direct laborhour.
d All of the company's nonmanufacturing costs are fixed.
e The company's finished goods inventory is negligible and can be ignored.
Required:
How many direct labor hours are used to manufacture one unit of each of the company's five products?
How much variable overhead cost is incurred to manufacture one unit of each of the company's five products?
What is the contribution margin per direct laborhour for each of the company's five products?
Assuming that direct laborhours is the company's constraining resource, what is the highest total contribution margin that the
company can earn if it makes optimal use of its constrained resource?
Assuming that the company has made optimal use of its direct laborhours, what is the highest direct labor rate per hour
that Walton Toy Company would be willing to pay for additional capacity that is for added direct labor time
Complete this question by entering your answers in the tabs below.
Assuming that direct laborhours is the company's constraining resource, what is the highest total contribution margin that
the company can earn if it makes optimal use of its constrained resource?
Note: Do not round intermediate calculations. Round your final answer to a whole dollar amount.
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