Sienna's Shades produces standard and deluxe sunglasses: (Click the icon to view the information.) The company has 19,000 machine hours available. In one machine hour, Sienna's can produce 55 pairs of the standard model or 15 pairs of the deluxe model. Read the requirements. Requirement 1. Which model should Sienna's emphasize? First, calculate the total contribution margin at full capacity for each model. Select the labels and calculate the contribution margin at capacity for the standard model, then the deluxe model. Standard Less: Contribution margin per pair Contribution margin per machine hour Capacity- Total contribution margin at full capacity Requirements Data table Standard Deluxe 1. Which model should Sienna's emphasize? 2. Sienna's also produces a third product: sport sunglasses. Sienna's incurs the following costs for 18,000 pairs of its sport sunglasses: Sales price per pair Variable expenses per pair $ 22 $ 27 13 18 Direct materials $ 36,000 Direct labor 54,000 Print Done Variable manufacturing overhead 54,000 18,000 Fixed manufacturing overhead Total manufacturing cost $ 162,000 18,000 Divided by number of pairs $ 9 Cost per pair Another manufacturer has offered to sell similar sunglasses to Sienna's for $5 per unit, a total purchase cost of $90,000. If Sienna's outsources and leaves its plant idle, it can save $8,000 of fixed overhead costs. Or it can use the freed manufacturing facilities to make other products that will contribute $10,000 to profits. In this case, the company will not be able to avoid any fixed costs. Identify and analyze the alternatives. What is the best course of action? Print Done