Answered step by step
Verified Expert Solution
Question
1 Approved Answer
SP 23 Serial Problem Business Solutions (Static) LO P3 Santana Rey sees that Business Solutions's line of computer desks and chairs is popular, and she
SP 23 Serial Problem Business Solutions (Static) LO P3 Santana Rey sees that Business Solutions's line of computer desks and chairs is popular, and she is finding it hard to keep up with demand. Santana only has 1,015 direct labor hours available. She must determine the best sales mix given her limited hours. Information about the desks and chairs follows. Selling price per unit Variable costs per unit Desks $1,125 500 Chairs $375 200 Contribution margin per unit Direct labor hours per unit $625 5 hours 175 desks $175 4 hours 50 chairs Maximum demand per quarter Required: Determine the best sales mix and the contribution margin the business will earn at that sales mix. (Round per unit amounts to 2 decimal places.) Contribution margin per direct labor hour Desks Chairs Maximum number of units to be sold Desks Chairs 175 50 50 Total Hours required to produce maximum units For most profitable sales mix Desks Chairs Total Hours dedicated to the production of each product 1,015 Units produced for most profitable sales mix Contribution margin per unit. Total contribution margin
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started