Williams Gear makes and sells three types of computer laptop sleeves: leather, fabric, and plastic. Management is trying to determine the most profitable mix. Sales prices, demand, and use of manufacturing inputs follow: Sales price Maximum quarterly demand (sleeves) Input requirements per unit Direct material quantity per sleeve (ounces) Direct material price per ounce of material Direct labor quantity per sleeve (hours) Direct labor price per hour Other Costs Variable costs Factory overhead Marketing Leather $ 160 2,800 Fabric Plastic $ 70 13,250 $ 40 21,500 16 6 10 $ 4.25 0.90 $ 35 $ 6.15 $ 2.35 0.4 0.3 $ 35 $ 35 $5 per direct labor-hour $6% of sales price Quarterly fixed costs Manufacturing $ 76,000 Marketing $ 19,500 Administration. $ 64,500 Williams has two production limits: (1) the demand for the individual sleeves (see maximum quarterly demand) and (2) 10,150 direct labor-hours per quarter caused by the physical layout of the production area. Required: a-1. Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of sleeve using the table below. a-2. How much operating profit could Williams earn if it were able to satisfy the annual demand? b-1. Compute the contribution margin for each sleeve per the constrained resource, direct labor. b-2. Which of the three product lines makes the most profitable use of the constrained resource, direct labor? c. Given the information so far, what product mix do you recommend? 44 Calculate the contribution margin for each time of clonun eine the product miu commanded in requirement Required: a-1. Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of sleeve using the table below. a-2. How much operating profit could Williams earn if it were able to satisfy the annual demand? b-1. Compute the contribution margin for each sleeve per the constrained resource, direct labor. b-2. Which of the three product lines makes the most profitable use of the constrained resource, direct labor? c. Given the information so far, what product mix do you recommend? d-1. Calculate the contribution margin for each type of sleeve using the product mix recommended in requirement c. d-2. How much operating profit should your recommended product mix generate? e. Suppose that the company could expand its labor capacity by leasing a new stitching machine that will free up 2,340 direct labor hours per quarter. What is the maximum quarterly lease payment that Williams Gear would be willing to pay? f. Suppose the company selling the stitching machine is not quite sure without further analysis how many direct labor hours the new machine would free up. Regardless of the number of new hours, what is the maximum quarterly lease payment Williams Gear would be willing to pay? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req 821 Req C Req D1 Req D2 Req E Req F Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of sleeves using the table below. Total revenue Total variable costs Contribution margin Leather Fabric Plastic Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Req How much operating profit could Williams earn if it were able to satisfy the annual demand? Operating profit < Req A1 Req B1 > Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Compute the contribution margin for each sleeves per the constrained resource, direct labor. (Do- calculations. Round your final answers to 2 decimal places.) Contribution margin Leather Fabric < Req A2 Plastic Req B2 > direct per f. Suppose the company selling the stitching machine is not quite sure without further analysis how m the new machine would free up. Regardless of the number of new hours, what is the maximum quar Williams Gear would be willing to pay? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Which of the three product lines makes the most profitable use of the constrained resource, direct labor Product line Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B21 Req C Req D1 Req D2 Req E Req F Given the information so far, what product mix do you recommend? (Round down "Units produced" to nearest whole unit.) Leather Sleeves Fabric Sleeves Plastic Sleeves Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Req F Calculate the contribution margin for each type of sleeves using the product mix recommended in requirement c down "Units produced" to nearest whole unit and round other intermediate calculation to nearest whole dollar.) Total revenue Less variable manufacturing costs: Total costs Contribution margin Leather Fabric Plastic < Req C Req D2 > Total Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Req F How much operating profit should your recommended product mix generate? Operating profit < Req D1 Req E > Williams Gear would be willing to pay? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Req F Suppose that the company could expand its labor capacity by leasing a new stitching machine that will free up 2,340. labor hours per quarter. What is the maximum quarterly lease payment that Williams Gear would be willing to pay? ( your final answer to nearest whole dollar.) Maximum quarterly lease payment per quarter Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Suppose the company selling the stitching machine is not quite sure without further analysis how new machine would free up. Regardless of the number of new hours, what is the maximum quar Gear would be willing to pay? (Round your final answer to nearest whole dollar.) Maximum quarterly lease payment per quarter Req E Req F Req A1 Req A2 Req B1 Req B21 Req C Req D1 Req D2 Req E Req F Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of sleeves using the table below. Leather Fabric Plastic Total revenue Total variable costs Contribution margin $ 0 $ 0 $ 0 willing to pay? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Req F How much operating profit could Williams earn if it were able to satisfy the annual demand? Operating profit Book Complete this question by entering your answers in the tabs below. Print Req A1 Req A2 Req B1 Req 82 Req C -Req D1 Req D2 Req E Req F Compute the contribution margin for each sleeves per the constrained resource, direct labor. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Contribution margin Leather Fabric Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Req F Which of the three product lines makes the most profitable use of the constrained resource, direct labor? Product line Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 C Req D1 Req D2 Req E Req F Given the information so far, what product mix do you recommend? (Round down "Units produced" to nearest whole unit.) Leather Sleeves Fabric Sleeves Plastic Sleeves ints willing to pay? Complete this question by entering your answers in the tabs below. Book Print Red A1 Req A2 Req B Req 82 Req C Req D1 Req D2 Req E Req F Calculate the contribution margin for each type of sleeves using,the product mix recommended in requirement c. (Round down "Units produced" to nearest whole unit and round other intermediate calculation to nearest whole dollar.) Total revenue Less variable manufacturing costs: Direct materials Direct labor Variable overhead Variable marketing Leather Fabric Plastic Total int Complete this question by entering your answers in the tabs below. Assessment Tool iFrame Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Req F How much operating profit should your recommended product mix generate? Operating profit < Req D1 Req E > Machine nee up. Regardless of the Book willing to pay? Complete this question by entering your answers in the tabs below. Pont Req A1 Req A2 Req B1 Req 82 Req C *Req D1 Req D2 Req E Req F Suppose that the company could expand its labor capacity by leasing a new stitching machine that will free up 2,340 direct labor hours per quarter. What is the maximum quarterly lease payment that Williams Gear would be willing to pay? (Round) your final answer to nearest whole dollar.) Maximum quarterly lease payment per quarter Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C *Req D1 Req D2 Req E Req F Suppose the company selling the stitching machine is not quite sure without further analysis how many direct labor hours the new machine would free up. Regardless of the number of new hours, what is the maximum quarterly lease payment Williams Gear would be willing to pay? (Round your final answer to nearest whole dollar.) Maximum quarterly lease payment per quarter < Req E Req F