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PROBLEM #2 - OPTIMAL SALES MIX (2 pts.) Santana Rey has found that Business Solutions' line of computer desks and chairs has become popular, and

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PROBLEM #2 - OPTIMAL SALES MIX (2 pts.) Santana Rey has found that Business Solutions' line of computer desks and chairs has become popular, and she is finding it hard to keep up with demand. She knows she cannot fill all her orders for both items, so she decides she must determine the optimal sales mix given the resources she has available. Information about the desks and chairs follows: Selling price per unit Variable costs per unit Contribution margin per unit Direct labor hours per unit Expected demand next quarter Desks Chairs $ 1,125 $ 500 625 5 hours 4 hours 175 desks 50 chairs 375 200 175 Santana has determined that she only has 1,015 direct labor hours available for the next quarter and wants to optimize her contribution margin given the limited number of direct labor hours available. Required: Determine the optimal sales mix and the contribution margin the business will earn at that sales mix

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