Santana Rey sees that Business Solutions's line of computer desks and chairs is popular, and she is finding it hard to keep up with demand. Santana only has 1,320 direct labor hours available. She...


Santana Rey sees that Business Solutions's line of computer desks and chairs is popular, and she is finding it hard to keep up with<br>demand. Santana only has 1,320 direct labor hours available. She must determine the best sales mix given her limited hours.<br>Information about the desks and chairs follows.<br>Desks<br>Chairs<br>Selling price per unit<br>Variable costs per unit<br>$ 1,421.75<br>580.00<br>$ 533.50<br>250.00<br>Contribution margin per unit<br>$ 841.75<br>$ 283.50<br>Direct labor hours per unit<br>Maximum demand per quarter<br>7 hours<br>6 hours<br>162 desks<br>45 chairs<br>Required:<br>Determine the best sales mix and the contribution margin the business will earn at that sales mix. (Round per unit amounts to 2<br>decimal places.)<br>Desks<br>Chairs<br>Contribution margin per direct labor hour<br>Desks<br>Chairs<br>Total<br>Maximum number of units to be sold<br>162<br>45<br>Hours required to produce maximum units<br>For most profitable sales mix<br>Desks<br>Chairs<br>Total<br>Hours dedicated to the production of each product<br>1,320<br>Units produced for most profitable sales mix<br>Contribution margin per unit<br>Total contribution margin<br>

Extracted text: Santana Rey sees that Business Solutions's line of computer desks and chairs is popular, and she is finding it hard to keep up with demand. Santana only has 1,320 direct labor hours available. She must determine the best sales mix given her limited hours. Information about the desks and chairs follows. Desks Chairs Selling price per unit Variable costs per unit $ 1,421.75 580.00 $ 533.50 250.00 Contribution margin per unit $ 841.75 $ 283.50 Direct labor hours per unit Maximum demand per quarter 7 hours 6 hours 162 desks 45 chairs Required: Determine the best sales mix and the contribution margin the business will earn at that sales mix. (Round per unit amounts to 2 decimal places.) Desks Chairs Contribution margin per direct labor hour Desks Chairs Total Maximum number of units to be sold 162 45 Hours required to produce maximum units For most profitable sales mix Desks Chairs Total Hours dedicated to the production of each product 1,320 Units produced for most profitable sales mix Contribution margin per unit Total contribution margin

Jun 11, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here