Problem $02$: MCV$/$Production factor.

A toy manufacturer estimates that, in order to meet the demands of its regular customers,

it must produce the following quantities at the following prices:

The production budget for raw materials and direct labor is as follows:

Direct labor is paid at a rate of $$16$ per hour. In addition, variable manufacturing

overheads are estimated at $25\%$ of direct labor costs. Fixed manufacturing overheads

amount to $$400,000$ per year.

The company receives the following additional orders from new customers:

The General Manager has to fill regular orders as a priority, and make a choice among

additional orders, as they go beyond the company's capacity of $131,000$ direct labor

hours.

WORK TO DO:

Calculate the contribution margin for each product. $(1$ point$)$

Calculate the contribution margin per hour of direct labor. $(1$ point$)$

What additional orders should the company accept? Indicate quantities. $(2$ points$)$

What is the opportunity cost of refusing any additional orders. $(1$ point$)$