Please do on paper not excel, list all the constraints and show all work.

Chapter 11 Supplement Homework Taylor Furniture produces and sells specialty mattresses. Production is a machine-intensive process. Taylor's variable costs are direct material costs, variable machining costs, and sales commissions. Marion Taylor, the owner, is planning production for the coming year and collects the following data: Estimated Demand Direct Material Var. Machining (units) Selling Price cost per unit cost per unit Nealy $750 $600 1,800 3,000 Tersa. 4,500 2,100 Pelta. 39,000 Salespeople are paid a 5% commission on each Nealy or Tersa sold, and a 10% commission on each Pelta sold. All other marketing and administra- tive costs are fixed and, along with the fixed manufacturing costs, total $8,750,000. Annual capacity is 50,000 machine-hours, which is limited by the avail- ability of machine. Variable machining costs are $200 per hour. Taylor Furniture holds negligible inventories to minimize business risk. Required 1. Calculate the machine-hours required to satisfy the estimated demand for each type of mattress. 2. is contribution margin per unit earned from each type of mat- What the 3. Advise Marion Taylor about the most profitable production levels of the three products. 4. Suppose Taylor Furniture can lease additional machining capacity on an as needed basis. What is the maximum amount that Marion Taylor would be willing pay for each hour of additional machining capacity in the to coming year