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The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's products is increasing, and management requests assistance from
The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's products is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data: Product Debbie Trish Sarah Mike Sewing kit Demand Selling Next year Price (units) per Unit 70,000 $ 38.00 62,000 $ 4.60 55,000 $31.00 48,000 $ 14.00 345,000 $10.00 Direct Materials $4.70 $1.60 $9.44 $4.00 $ 5.20 Direct Labor $ 3.50 $ 1.00 $ 6.50 $ 4.50 $ 0.50 Required 1 Required 2 Required 3 Required 4 Required 5 How many direct labor hours are used to manufacture one unit of each of the company's five products? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Debbie 0.35 Trish 0.10 Sarah 0.65 Mike 0.45 Sewing Kit 0.05 Direct labor hours per unit Required 1 Required 2 Required 3 Required 4 Required 5 How much variable overhead cost is incurred to manufacture one unit of each of the company's five products? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Debbie $ 1.05 Trish 0.30 Sarah 1.95 Mike 1.35 Sewing Kit $ 0.15 Variable overhead per unit $ $ $ Required 1 Required 2 Required 3 Required 4 Required 5 What is the contribution margin per direct labor-hour for each of the company's five products? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Debbie Trish Sarah Mike Sewing Kit Contribution Margin per DLH Required 2 Required 3 Required 4 Required 5 ..... Required 1 Required 2 Required 3 Required 4 Required 5 .. Assuming that direct labor-hours is the company's constraining resource, what is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? (Do not round intermediate calculations. Round your final answer to a whole dollar amount.) Highest total contribution margin Required 1 Required 2 Required 3 Required 4 Required 5 Assuming that the company has made optimal use of its 94,500 direct labor-hours, what is the highest direct labor rate per hour that Walton Toy Company would be willing to pay for additional capacity (that is, for added direct labor time)? (Do not round intermediate calculations. Round your answers to 2 decimal places.) per Highest direct labor rate per hour hour
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