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The Walton Toy Company manufactures four dolls and a sewing kit. It provided the following data for next year: The following additional information is available
The Walton Toy Company manufactures four dolls and a sewing kit. It provided the following data for next year: The following additional information is available a. The company's plant has a capacity of 100,400 direct labor-hours per year on a single-shift basis. Each employee and piece of equipment are capable of making all five products. b. Next year's direct labor pay rate will be $10 per hour. c. Fixed manufacturing costs total $575,000 per year. Variable overhead costs are $2 per direct labor-hour. d. All of the company's nonmanufacturing costs are fixed. e. The company's finished goods inventory is negligible and can be ignored. Assuming direct labor-hours is the company's constraining resource, what is the highest total contribution margin the company can earn next year if it makes optimal use of its constrained resource? Note: Do not round intermediate calculations. Round your final answer to a whole dollar amount
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