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Please answer Questions #4 and #5. All answers shown are correct. The walton Toy Company manufactures a line of dolls and a dol dress sewing
Please answer Questions #4 and #5. All answers shown are correct.
The walton Toy Company manufactures a line of dolls and a dol 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 Demand Seling Direct Labor Next year Price Direct per Unit Materials $4.60 $1.50 $9.29 $3.90 $5.10 (units) Debbie Trish Sarah Mike Sewing kit 69,000 61,000 54,000 46,800 S41.00 54.50 $30.50 $15.00 5 9.90 $4.00 $1.00 7.00 5.00 0.50 344,000 The following additional information is available: a The company's plant has a capacity of 100 400 direct labor-hours per year on a single shift basis The company's present employees and equipment can produce all tive products b. The direct labor rate of $10 per hour is expected to remain unchanged during the coming year C. Fixed costs total $575,000 per year variable overhead costs are $2 per direct labor-hour d. All of the company's nonmanufacturing costs are fioxed. e. The company's finished goods inventory is negligible and can be ignored. Required 1. Determine the contribution margin per direct labor-hour expended on each product (Do not round intermediate calculations. Round your answers to 2 decimal places.) ProductMargin per DLH Trish Sarah Mike 79.00 18.00 18.30 10.20 84.00Step by Step Solution
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