Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribedimage text in transcribed
image text in transcribedimage text in transcribed
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

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

Recommended Textbook for

Financial Accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

11th Edition

1119594596, 978-1119594598

More Books

Students also viewed these Accounting questions

Question

What research background do you have?

Answered: 1 week ago

Question

What is the use of bootstrap program?

Answered: 1 week ago

Question

What is a process and process table?

Answered: 1 week ago

Question

What is Industrial Economics and Theory of Firm?

Answered: 1 week ago

Question

6. How can hidden knowledge guide our actions?

Answered: 1 week ago

Question

7. How can the models we use have a detrimental effect on others?

Answered: 1 week ago