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Selling price per unit Variable costs per unit Contribution margin per unit Direct labor hours per unit Expected demand for next quarter Desks $1,180.00 530.00
Selling price per unit Variable costs per unit Contribution margin per unit Direct labor hours per unit Expected demand for next quarter Desks $1,180.00 530.00 $ 650.00 5 hours 160 desks Chairs $ 437.00 210.00 $227.00 4 hours 46 chairs Santana has determined that she only has 928 direct labor hours available for the next quarter and wants to optimize her contribution margin given the limited number of direct labor hours available. Required: Determine the optimal 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 per direct labor hour Desks Chairs Total 160 46 Maximum number of units to be sold Hours required to produce maximum units For most profitable sales mix Desks Chairs Total Hours dedicated to the production of each product 928 Units produced for most profitable sales mix Contribution margin per unit Total contribution margin
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