Use this setup for the next two questions. Jones Co, produces 3 dolls. Each doll has hair that is made of a special filament that is only available from one supplier. The filament sells for $4 per gram.

Tom wears a soccer uniform.

Sheila is in a wedding dress and requires some hand sewing.

Godiva has long hair.

The budgeted selling price and costs for the 3 dolls are listed below. The budget assumes 4,000 of each doll are produced (12,000 dolls in total). The fixed overhead costs are all common fixed costs that are simply allocated among the product lines.

Assume that this year, there is unlimited demand for all three products. Jones plans to produce 12,000 dolls.

Assuming that there are no constraints on any of the production resources, which single type of doll should be produced to maximize net income for Jones Co.?

a. Tom

b. Sheila

c. Godiva

Assume that due to a temporary embargo, only 4,000 grams of filament for doll hair will be available for use.

Which doll should be produced to maximize net income for Jones Co.?

a. Tom

b. Sheila

c. Godiva

Tom Sheila Godiva Selling price. $25 $40 $35 Direct labor Plastic (body Fabric (clothes). $5 $3 $2 $2 $1 $4 $17 $10 $4 $3 $4 $2 $8 $31 $5 $4 $0 $10 $1 $4 $24 Variable overhead Fixed overhead Profit per doll $8 $9 $11