Problem 12-25 Volume Trade-Off Decisions [L012-5, LO12-6) The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's products 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 Selling Next Price Product Debbie Trish Sarah Mike year per Direct Direct (units) Unit Materials Labor 65,000 $28.00 $4.20 $4.85 57,000 6.00 $1.1 $1.26 50,000 $35.00 $8.69$6.75 40,000 $14.0 $3.50 $4.95 Sewing kit 340,000 9.50 $4.70 $0.81 es The following additional information is available: a. The company's plant has a capacity of 116,330 direct labor-hours per year on a single-shift basis. The company's present employces and equipment can produce all five products. b. The direct labor rate of $9 per hour is expected to remain unchanged during the coming year c. Fixed manufacturing costs total $535,000 per year. Variable overhead costs are $2 per direct labor-hour