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 finding it hard to keep up with demand.

image text in transcribed
Santana Rey sees that Business Solutions's line of computer desks and chairs is popular, and she is finding it hard to keep up with demand. Santana only has 1,051 direct labor hours available. She must determine the best sales mix given her limited hours. Information about the desks and chairs follows. Selling price per unit Variable costs per unit Contribution margin per unit Direct labor hours per unit Maximum demand per quarter Desks $ 1,212.50 520.00 $ 692.50 5 hours 179 desks Chairs $ 389.00 180.00 $ 209.00 4 hours 51 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 direct labor hour Desks Chairs Total 170 51 Maximum number of units to be sold Hours required to produce maximum units For most profitable sales mix Desks Chairs Houts dedicated to the production of each product Total 1.051 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_2

Step: 3

blur-text-image_3

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

Accounting And Causal Effects Econometric Challenges

Authors: Douglas A Schroeder

1st Edition

1441972242, 9781441972248

More Books

Students also viewed these Accounting questions