Serial Problem Business Solutions LO P3Santana Rey has found that Business Solutions's line of computer desks and chairs has become very popular, and she is finding it hardto keep up with demand. She knows that she cannot fill all of her orders for both items, so she decides she must determine the optimalsales mix given the resources she has available. Information about the desks and chairs follows.Selling price per unit.Variable costs per unitContribution margin per unitDirect labor hours per unitExpected demand for next quarterContribution per direct labor hourMaximum number of units to be soldHours required to produce maximum unitsFor most profitable sales mixDesks$1,203.50Santana has determined that she only has 1,167 direct labor hours available for the next quarter and wants to optimize her contributionmargin given the limited number of direct labor hours available.Hours dedicated to the production of each product410.00$ 793.50Required:Determine the optimal sales mix and the contribution margin the business will earn at that sales mix. (Round per unit amounts to 2decimal places.)Units produced for most profitable sales mixContribution margin per unitTotal contribution margin6 hours167 desksDesksDesksChairs$363.75160.00$203.75Desks5 hours46 chairs167ChairsChairsChairs46TotalTotal1,167

Sales Mix:It is the proportion of each type of product sold in a business compared to the business's…

Santana Rey has found that Business Solutions's line of computer desks and chairs has become very popular, and she is finding it hard to keep up with demand. She knows that she cannot fill all of her orders for both items, so she decides she must determine the optimal sales mix given the resources she has available. Information about the desks and chairs follows. Selling price per unit Variable costs per unit Contribution margin per unit Direct labor hours per unit Expected demand for next quarter Desks $1,203.50 410.00 $ 793.50 6 hours 167 desks Chairs $363.75 160.00 $203.75 5 hours 46 chairs Santana has determined that she only has 1,167 direct labor hours available for the next quarter and wants to optimize her contribution margin given the limited number of direct labor hours available. Required: Determine the optimal sales mix and the contribution margin the business will earn at that sales mix. (Round per unit amounts to 2 decimal places.)

Santana Rey has found that Business Solutions's line of computer desks and chairs has become very popular, and she is finding it hard to keep up with demand. She knows that she cannot fill all of her orders for both items, so she decides she must determine the optimal sales mix given the resources she has available. Information about the desks and chairs follows. Selling price per unit Variable costs per unit Contribution margin per unit Direct labor hours per unit Expected demand for next quarter Desks $1,203.50 410.00 $ 793.50 6 hours 167 desks Chairs $363.75 160.00 $203.75 5 hours 46 chairs Santana has determined that she only has 1,167 direct labor hours available for the next quarter and wants to optimize her contribution margin given the limited number of direct labor hours available. Required: Determine the optimal sales mix and the contribution margin the business will earn at that sales mix. (Round per unit amounts to 2 decimal places.)

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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