28. SimplengTaksil Company produces furniture. It has four products, tables, chairs, cabinets and bookshelves. It has 50,000 direct labor hours available. Below are the details pertaining to each product: TableChairsCabinetsBookshelvesCM/UnitP25P20P28P24DLH/Unit5 hours2 hours7 hours5 hoursMaximum demand3,500 units12,000 units5,000 units3,000 units What will be the highest contribution margin if we prioritize the products properly?

Contribution means the difference between the selling price and variable cost . Fixed cost remain…

Answered: 28. SimplengTaksil Company produces…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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28.

SimplengTaksil Company produces furniture. It has four products, tables, chairs, cabinets and bookshelves. It has 50,000 direct labor hours available. Below are the details pertaining to each product:

	Table	Chairs	Cabinets	Bookshelves
CM/Unit	P25	P20	P28	P24
DLH/Unit	5 hours	2 hours	7 hours	5 hours
Maximum demand	3,500 units	12,000 units	5,000 units	3,000 units

What will be the highest contribution margin if we prioritize the products properly?

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