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Susan's Shades produces standard and deluxe sunglasses (Click the icon to view the information.) The company has 20,000 machine hours available. In one machine hour,
Susan's Shades produces standard and deluxe sunglasses (Click the icon to view the information.) The company has 20,000 machine hours available. In one machine hour, Susan's can produce 40 pairs of the standard model or 10 pairs of the deluxe model Read the requirements Requirement 1. Which model should Susan'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 Deluxe Data Table Less Contribution margin per pair Deluxe Standard 25 $ 36 Sales price per pair Variable expenses per pair Contribution margin per machine hour Capacity- Total contribution margin at full capacity Which model should Susan's emphasize? Susan's should emphasize the 20 14 PrintDone model Susan's Shades produces standard and deluxe sunglasses: EEE (Click the icon to view the information.) The company has 20,000 machine hours available. In one machine hour, Susan's can produce 40 pairs of the standard model or 10 pairs of the deluxe model. Read the requirements Requirement 2. Susan's also produces a third product: sport sunglasses. Review the cost and other information related to this product. Identify and analyze the alternatives. What is the best course of action? First, complete the following table. Buy Sunglasses Make Facilities Make Other Idle Products Sunglasses Relevant Costs: Direct materials Direct labor Variable overhead Fixed overhead Purchase cost Total cost of obtaining sunglasses Profit from other products Net cost of obtaining sunglasses What is the best course of action? Susan's Shades should
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