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Santana Rey sees that Business Solutions's line of computer desks and chairs is popular, and she is nding it hard to keep up with demand.
Santana Rey sees that Business Solutions's line of computer desks and chairs is popular, and she is nding it hard to keep up with demand. Santana only has 1,638 direct labor hours available. She must determine the best sales mix given her limited hours. Information about the desks and chairs follows. Desks Chairs Selling price per unit $ 1,464.00 $ 502.75 Variable costs per unit 440.00 200.00 Contribution margin per unit $ 1,024.00 $ 302-75 Direct labor hours per unit 8 hours 7 hours Maximum demand per quarter 175 desks 48 chairs Required: Determine the best sales mix and the contribution margin the business will earn at that sales mix. (Round per unit amounts to 2 decimal places.) Maximum demand per quarter 175 desks 48 chairs Required: Determine the best 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 margin per unit Direct labor hours per unit Contribution margin per direct labor hour Desks Chairs Total Maximum number of units to be sold 175 48 Hours required to produce maximum units For most profitable sales mix Desks Chairs Total Hours dedicated to the production of each product 1,638 Units produced for most profitable sales mix Contribution margin per unit Total contribution margin
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