The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the companys 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	Demand Next year (units)	Selling Price per Unit		Direct Materials		Direct Labor
Debbie	58,000	$	26.00	$	5.10	$	2.10
Trish	50,000	$	7.50	$	1.90	$	0.78
Sarah	43,000	$	41.50	$	7.64	$	3.90
Mike	48,000	$	11.00	$	2.80	$	2.70
Sewing kit	333,000	$	8.80	$	4.00	$	0.48

The following additional information is available:

1. The companys plant has a capacity of 92,190 direct labor-hours per year on a single-shift basis. The companys present employees and equipment can produce all five products.

2. The direct labor rate of $6 per hour is expected to remain unchanged during the coming year.

3. Fixed manufacturing costs total $600,000 per year. Variable overhead costs are $3 per direct labor-hour.

4. All of the companys nonmanufacturing costs are fixed.

5. The companys finished goods inventory is negligible and can be ignored.

Required:

3. What is the contribution margin per direct labor-hour for each of the companys five products?

4. Assuming that direct labor-hours is the companys constraining resource, what is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource?

5. Assuming that the company has made optimal use of its 92,190 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)?

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 S 47.86 $ 34.08 S 43.09 $ 9.22 S 51.00 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 $ 3,955,270 X Required 1 Required 2 Required 3 Required 4 Required 5 Assuming that the company has made optimal use of its 92,190 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.) Highest direct labor rate per hour S 59.00 per hour