Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please show step by step instruction and explaination on number 3, 4 and 5 please... The Walton Toy Company manufactures a line of dolls and
Please show step by step instruction and explaination on number 3, 4 and 5 please...
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 Demand Next year Selling Price Direct Direct Labor Product (units) Debbie Trish Sarah Mike Sewing kit 52,000 44,000 37,000 40,800 327,000 r UnitMaterials 17.00 $6.50 $26.00 12.00 $ 8.20 $4.50 $1.30 $6.74 $2.20 $3.40 $2.80 $1.40 $4.90 $3.50 $1.05 The following additional information is available a. The company's plant has a capacity of 114,750 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 $7 per hour is expected to remain unchanged during the coming year c. Fixed costs total S540,000 per year. Variable overhead costs are $4 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 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.) Contribution Product Margin per DLH Debbie Trish Sarah Mike Sewing kit 20.25 15.00 16.51 8.60 21.00Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started