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Question 37 2 pts SixthZ can make three different types of treehouses - large treehouses, medium treehouses, and small treehouses. Data for these types of
Question 37 2 pts SixthZ can make three different types of treehouses - large treehouses, medium treehouses, and small treehouses. Data for these types of treehouses is given in the table below. SixthZ is constrained by the number of employees it can find to paint the treehouses. Large Medium Small Selling Price Per Set $1,300 $1.150 $800 Direct Materials Per Set $600 $400 $300 Direct Labor Per Set $150 $120 $75 ($15/hr) VMO Per Set ($2 per $20 $16 $10 Direct Labor hour) FMO Per Set $80 $80 $80 Variable Selling & Administrative Expenses Per Set $15 $12 $10 Fixed Selling & Administrative Expenses $25 $25 $25 Per Set Assuming that direct labor hours are limited, which model is the most profitable to produce? O Small Treehouses O Large Treehouses O SixthZ does not have enough information to make this decision O Medium Treehouses
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