Question 5 1 pts Mugshot Monday and Smell the Roses have merged their companies to create MS Pottery. They have decided to stop making decorated vases, but have retained both Mugs and Plain Vases in their product catalog. They have also decided to pay commissions equal to 4% of total sales dollars. Below is the sales and cost information for each of the products before the merger. MS Potter believes they were each selling at the maximum market demand, 56,250 mugs and 30,000 vases. MS Pottery Sales and Cost Information on units sold) Mugs Per Unit Total Plain Vases per unit Total Sales 20 1,125,000 Sales 60 1,800,000 Direct Materials 1.50 84,375 Direct Materials 4 120,000 Direct Labor 8.00 450,000 Direct Labor 15 450,000 Variable Overhead 2.00 225,000 Variable Overhead 7.50 225,000 ($0.25 per DL$) Fixed Overhead ($0.50 per DL$) 5.60 315,000 Fixed Overhead 10.50 315,000 - allocated T t | P d t coat m \"C 17.10 1.074375 Total Product Cost 37 1,110,000 05 Variable selling Variable selling expense (4% of .80 45,000 expense (4% of 2.40 72,000 sales dollars) sales dollars) Fixed selling expense Fixed selling .50 28,125 .50 15,000 (allocated based expense As part of the merger, MS Pottery is now sharing one kiln, which has a maximum capacity of 1,000,000 cubic inches per period, which is less than what would be required to produce both products in quantities to meet market demand. Perform the calculations to help MS Pottery calculate how many units of each product they should produce to maximize prots, given the market demand and the resource constraint of the kiln. Use y calc many each pr produce to maximize profits, given the market demand and the resource constraint of the kiln. Use whole dollars when the answer is a whole dollar amount. Otherwise, round to 2 decimals. Do not use the dollar sign ($). Analysis to Maximize Profits with a Resource Constraint Maximize a Resource Mugs Vases Constraint Selling price per unit 20 60 Variable costs per unit Contribution Margin per unit Kiln inches required per unit 6 24 Contribution margin per kiln inch Which product should MS Pottery make first? (answer Mugs or Vases) Calculate how many units of each product MS Pottery should produce to maximize profits. Analysis to Maximize Profits with a Resource Constraint Maximize Profits Calculations How many products should be made of the more profitable product? How many kiln inches are required to make one unit of the more profitable product? How many kiln inches are required to make the more profitable product? How many total kiln inches are available? 1,000,000 How many kiln inches are available for the second product? How many kiln inches are required for one unit of the second product? Ho