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Please help answer required questions 1-6 PROBLEM 7-25 Utilization of a Constrained Resource [LO 7-5, LO 7-6 The Walton Toy Company manufactures a line of
Please help answer required questions 1-6
PROBLEM 7-25 Utilization of a Constrained Resource [LO 7-5, LO 7-6 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 fiom you in determining an economical sales and production mix for the coming year. The company has provided the following data: Demand Next Year (units) Selling Price per Unit Direct Materials Direct Labor Product Debbie. Trish Sarah . . 50,000 42,000 35,000 40,000 325,000 $13.50 $5.50 $21.00 $10.00 $8.00 $4.30 $1.10 $6.44 $2.00 $3.20 $3.20 $2.00 $5.60 $4.00 $1.60 Sewing kit . The following additional information is available: The company's plant has a capacity of 130,000 direct labor-hours per year on a single-shift basis. The company's present employces and equipment can produce all five products The direct labor rate of $8 per hour is expected to remain unchanged during the coming year Fixed costs total $520.000 per year. Variable overhead costs are $2 per direct labor-hour. All of the company's nonmanufacturing costs are fixed. The company's finished goods inventory is negligible and can be ignored. a. b. c. d. e Step by Step Solution
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