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Santana Rey has found that Business Solutions's line of computer desks and chalrs has become very popular, and she Is finding It hard to keep
Santana Rey has found that Business Solutions's line of computer desks and chalrs 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 decldes she must determine the optimal sales mix glven the resources she has avallable. Information about the desks and chalrs follows Selling price per unit Variable costs per unit Contribution nargin per unit Direct labor hours per unit Expected demand for next quarter $1,389.58 568.69 $551.25 296.89 $ 829.50 $261.25 6 hours 178 desks hours 45 chairs Santana has determined that she only has 1,243 direct labor hours avallable for the next quarter and wants to optimize her contribution margin glven the lmited number of direct labor hours avallable. Required: Determine the optimal sales mix and the contribution margin the business will earn at that sales mlx. (Round per unit amounts to 2 decimal places.) Desks Chairs Contribution per direct labor hour Desks Chairs Total Maximum number of units to be sold 178 45 Hours required to produce maximum units most profitable sales mix Desks Chairs Total Hours dedicated to the production of each product 1243 Units produced for most profitable sales mix Contribution margin per unit Total contribution margin
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