Santana Key sees that Business Solutions's line of computer desks and chairs is popular, and she is f demand Santana only has 772 direct labor hours available. She must determine the best sales mix given her limited hours Information about the desks and chairs follows Selling price per unit Variable costs per unit Contribution margin per unit. Direct labor hours per unit Maximum demand per quarter Desks $ 939.00 420.00 $ 519.00 4 hours 166 desks Chairs $427,75 280.00 $147.75 3 hours 48 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.)
Santana Key sees that Business Solutions's line of computer desks and chairs is popular, and she is f demand Santana only has 772 direct labor hours available. She must determine the best sales mix given her limited hours Information about the desks and chairs follows Selling price per unit Variable costs per unit Contribution margin per unit. Direct labor hours per unit Maximum demand per quarter Desks $ 939.00 420.00 $ 519.00 4 hours 166 desks Chairs $427,75 280.00 $147.75 3 hours 48 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Gadubhai
Transcribed Image 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 772 direct labor hours available. She must determine the best sales mix given her limited hours Information
about the desks and chairs follows
Selling price per unit
Variable costs per unit
Contribution margin per unit
Direct labor hours per unit
Maximum demand per quarter
Contribution margin per unit
Direct labor hours per unit
Contribution margin per direct labor hour
Maximum number of units to be sold
Hours required to produce maximum units
Desks
For most profitable sales mix
$ 939.00
420.00
$ 519.00
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.)
Hours dedicated to the production of each product
Units produced for most profitable sales mix
Contribution margin per unit
Total contribution margin
4 hours
166 desks
$
S
Desks
Chairs
$427.75
280.00
$147.75
519.00 $
Desks
129.75 $
4
Desks
166
664
3 hours
48 chairs
664
Chairs
The company does not have enough hours to fill maximum demand.
147.75
49.25
Chairs
48
144
Chairs
Total
Total
808
4
772
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