Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Santana Rey has found that Business Solutions's line of computer desks and chairs has become very popular, and she is finding it hard to keep

image text in transcribed
image text in transcribed
Santana Rey has found that Business Solutions's line of computer desks and chairs has become very popular, and she is finding it hard to keep up with demand. She knows that she cannot fill all of 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 Chairs $361.00 200.00 $161.00 Desks $1,098.75 Selling price per unit Variable costs per unit Contribution margin per unit Direct labor hours per unit Expected demand for next quarter 440.00 $ 658.75 S hourahoura 177 desks 46 chairs Santana has determined that she only has 1,025 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. (Round per unit amounts to 2 decimal places.) Desks Chairs Contribution per direct labor hour Desks Chairs Total 46 Maximum number of units to be sold Hours required to produce maximum units For most profitable sales mix Desks Chairs Total 025 Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Prepare a short profile of Henry words worth Longfellow?

Answered: 1 week ago

Question

What is RAM as far as telecommunication is concerned?

Answered: 1 week ago

Question

Question 1: What is reproductive system? Question 2: What is Semen?

Answered: 1 week ago

Question

Describe the sources of long term financing.

Answered: 1 week ago