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Soft and Cuddiy Friends (SCF) produces soft dolls. Demand for the dolls is increasing, and management wants you to identify an economical sales and production

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Soft and Cuddiy Friends (SCF) produces soft dolls. Demand for the dolls is increasing, and management wants you to identify an economical sales and production mix for the coming year. The following information is available: The following additional information is avallable: a. The company's plant has a capacity of 120.000 direct labour-hours per year on a single-shift basis. The company's present employees and equipment can produce all five products. b. The direct labour rate is $15 per hour; this rate is expected to remain unchanged during the coming year. c. Fived manufacturing costs amount to $780,000 per year. Variable overheod costs are $5 per direct labour hour. d. All of the company's sales and administrative costs are fixed. Required: 1. How many total direct labour-hours will be required to produce the units estimated to be sold during the coming year? Show your computations. (Round your answers to 2 decimal places.) 2. Keeping in mind the direct labour-hour capacity, what should be the company's product mix for the upcoming year? Prepare a schedule in support of your recommendation. (Round "Per Unit" to 2 decimal places.) 3. What is the highest price, in terms of a rate per hour, that SCF would be willing to pay for additional capacity (i.e, for added direct Tabour time)? 4. Assume again that the company does not want to reduce sales of any product. Identfy ways the company could obtain the additional output. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Contracting out some work to outside suppliers Employing additional tabewe force Expanding the workforce Eliminating wasted labour time in the production process 7 Utilizing the unutired capacity 2. Workang overtime

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