The following additional information is available: a. The production process is machine intensive with adherence to strict sanitation standards and internationally accepted technical process flow for ice cream manufacturing. b. For ice cream production the companys plant has a capacity of 180,000 direct labor-hours per year on a single-shift basis. The companys present employees and equipment can produce all five products. c. The direct labor rate of 68.00 per hour is expected to remain unchanged during the coming year. Variable overhead costs are 35.00 per direct labor hour. d. All of the companys nonmanufacturing costs are fixed e. The companys finished goods inventory is negligible and can be ignored. f. Fixed Costs total 25,260,000 per year. g. Net operating income for the year amounted to 21,345,930

(1) Determine the contribution margin per direct-labor hour expended on each product. (2) Prepare a schedule showing the total direct labor hours that will be required to produce the projected sales during the coming year. (3) Examine the data you have computed in (1) and (2). a. Is the current capacity enough to satisfy the estimated current demand? If there is a constraint, there should be a reduction of which product and by how many units? Why? Considering plant capacity, production is allowed for how many units? b. How would you allocate the 180,000 direct labor hours of capacity to Nestle Companys production? Prepare a production schedule for all five (5) products according to plant capacity. (4) What is the highest price, in terms of a rate per hour, that Nestle would be willing to pay for additional capacity (that is, for added direct labor time)? (5) Assume the company does not want to reduce sales of any product, identify ways in which the company could obtain the additional output