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Serial Problem Business Solutions LO A1 Santana Rey has found that Business Solutions's line of computer desks and chairs has become very popular, and she

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Serial Problem Business Solutions LO A1 Santana Rey has found that Business Solutions's line of computer desks and chairs has become very popular, and she is finding it hard to keep up with demand. She knows that she cannot fill all of her orders for both items, so she decides she must determine the optimal sales mix given the resources she has available. Information about the desks and chairs follows. Selling price per unit Variable costs per unit Contribution margin per unit Direct labor hours per unit Expected demand for next quarter Desks $1,261.50 540.00 $ 721.50 6 hours 171 desks Chairs $362.50 150.00 $212.50 5 hours 5e chairs Santana has determined that she only has 1,216 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 Donks Chairs Total 171 50 Maximum number of units to be sold Hours required to produce maximum units For most profitable sales mix Desks Chairs Total 1,216 Hours dedicated to the production of each product 3 Contribution margin per unit Direct labor hours per unit Expected demand for next quarter 121.50 6 hours 171 desks 1212.54 5 hours 5e chairs Santana has determined that she only has 1,216 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 171 50 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 1,216 Units produced for most profitable sales mix Contribution margin per unit Total contribution margin

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