Total $ 1,800,000.00 2,925,000.00 120,000.00 204,375.00 450,000.00 900,000.00 225,000.00 450,000.00 315,000.00 630,000.00 1,110,000.00 2,184,375.00 Instructions: Determine how many of each product to make, given the resource constraint of kiln inches Product Mugs Vases Cost Information Units $ Units Sales 56,250.00 1,125,000.00 30,000.00 Costs @ 80% capacity Direct materials 1.50 84,375.00 4.00 Direct labor 8.00 450,000.00 15.00 Variable OH ($.50 per DLS) 4.00 225,000.00 7.50 Fixed OH (5.75 per DLS) - allocated 5.60 315,000.00 10.50 Total cost 19.10 1,074,375.00 37.00 Variable selling expense (commissions of 4% of sales dollars) 0.80 45,000 2.40 Fixed selling expense (allocated based on units sold) 0.50 28,125 0.50 Resource constraint: Kiln: The Kiln can only fire 120,000 cubic inches per year Mugs take up 36 cubic inches Bowls take up 120 cubic inches Product C does not use the welding machine Market Demand We forecasted market demand to be up to 1,000 mugs and 800 bowis per year Product Mugs Vases Selling Price per Unit DM DL 72,000.00 117,000.00 15,000.00 43,125.00 Mugs Vases 20 Product 21 Selling Price per Unit 22 DM 23 DL 24 Var OH 25 Var Selling 26 Variable Costs per unit 27 Contribution Margin per Unit 28 Kiln inches per Unit 29 Contribution Margin per kiln inch Maximize the production on the product with the higher CM/Kiln 30 Inches 31 Multiply by kiln inches 32 Total Kiln inches Available 33 Kiln inchesused on maximized Product 34 Kiln inches Available for second product Divide by #kiln inches required per 35 unit for second product # of Units to be produced of second 36 Product