Problem 13-25 (Algo) Volume Trade-Off Decisions [LO13-5, LO13-6] The Wation Toy Compary monufactures a line of dolis and a sewing kit: Demand for the company's products is increasing, and mansgement requests assistance from you in determining an economical sales and peoduction mix for the coming yeac. The company has provided the following detar The following addiond information is avilable: a. The company's plant hos a capecity of 100,400 direct lator-hours per vear on a single-shit bask. The company's present. employes and equpment can produce all five products. b. The diect labor rate of 510 per heur is expected to remain unchanged during the coming yeat. e. Fiend mandacturing costs tote $575,000 per yea. Variable overhead costs are $2 per direct labor-hour. d. Al of the companys nonmanulocturing conts are fined. 6. The companys finhed goeds invenory is negligible and can be ignored. Pequired 1. How mary direct labor hours ate used to manufacture one uns of esch of the companys five peoducts? 2. How much varibile ovetiesd cost it incuired to manulacture one unit of ench of the compary's five products? 3. What is the contribution margin per diect labor-houe for eoch of the companys five products? 4. Assuming trat direct iaborhours is the cocgerys consysining resource, what is the highect total contribution margin that the company can eare in 5. Assuming that it a makes optinal use of iti constrained resource? that Walion foy Ceme cerphary has made optimal ise of its 100,400 direct laborhours. What is the highest direct labor rate per hour that Wahon Foy Cempasy would be willing to pay for adiltional capacily (ohot is, for added airect labor time)? Complete this question by entering your answers in the tabs below