Sarah has talked with the marketing department about the situation and suggested that the company raise the sales price on the weight bench to $66 to reduce customer demand. The marketing department believes that at the higher price, demand for the weight bench will drop to 5,920 units. What total contribution margin will Pharoah earn?

Question 3 Pharoah Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a finishing process that can only be completed on machines that were recently purchased for this purpose. The machines have a maximum capacity of 6,000 machine hours, and no other products that the company makes use these machines Sarah Jacob, the company's operations manager, is preparing the production schedule for the coming month and cant seem to find enough machine time to produce enough units to meet the customer demand that the marketing department has included in the sales budget. Michael Stoner, the company's controller, has gathered the following information about the two products: Weight Rack $49 21 Bench $58 14 Selling price per unit Direct materials Direct labor Variable overhead Fixed overhead Profit per unit Unit sales demand Machine hours per unit 10 $20 7,000 0.8 ,000 0.5 Your answer is correct. Caloulate the total number of machine hours needed to produce enough units to meet the sales demand for the two products 7600 Total number of machine hours Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO VIDEO Attempts: 1 of 3 used [ Your answer is correct. How should Sarah allocate the 6,000 available machine hours between the two products s0 that Pharoah maximizes its profits? Machine Hours 4000 Weight Bench 2000 Dumbbell rack