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Wildhorse Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a finishing process that can only be completed on machines that
Wildhorse Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a finishing process that can only be completed on machines that were recently purchased for this purpose. The machines have a maximum capacity of 10,500 machine hours, and no other products that the company makes use these machines. Sarah Jacob, the company's operations manager, is preparing the production schedule for the coming month and can't seem to find enough machine time to produce enough units to meet the customer demand that the marketing department has included in the sales budget. Michael Stoner, the company's controller, has gathered the following information about the two products: Dumbbell Rack Weight Bench Selling price per unit $ 46 $ 58 Direct materials 22 14 Direct labor 4 8 Variable overhead 2 6 Fixed overhead 5 10 Profit per unit $ 13 $ 20 Unit sales demand 5,000 8,000 Machine hours per unit 0.75 1.5 (b) Your answer is correct. How should Sarah allocate the 10,500 available machine hours between the two products so that Wildhorse maximizes its profits? Machine Hours 3750 Dumbbell Rack 6750 Weight Bench e Textbook and Media Attempts: 1 of 3 used (c) Your answer is incorrect. What total contribution margin will Wildhorse realize based on your answer to part (b)? $ Total contribution margin e Textbook and Media Save for Later Attempts: 1 of 3 used Submit
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