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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 1,559 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 $ 1,508.00 400.00 $1,108.00 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.) For most profitable sales mix 8 hours: 166 desks Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit $ $ Desks Desks Chairs $ 684.25 270.00 $ 334.25 7 hours 44 chairs. The company does not have enough hours to fill maximum demand. Desks Chairs Chairs Chairs Total Total

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 1,559 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 $ 1,508.00 400.00 $1,108.00 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.) For most profitable sales mix 8 hours: 166 desks Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit $ $ Desks Desks Chairs $ 684.25 270.00 $ 334.25 7 hours 44 chairs. The company does not have enough hours to fill maximum demand. Desks Chairs Chairs Chairs Total Total

FINANCIAL ACCOUNTING
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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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 1,559 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 $ 1,508.00 400.00 $ 1,108.00 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.) For most profitable sales mix 8 hours 166 desks Hours dedicated to the production of each product Units produced for most profitable sales mix. Contribution margin per unit Total contribution margin- $ $ Desks Desks Chairs $ 604.25 270.00 $ 334.25 7 hours 44 chairs The company does not have enough hours to fill maximum demand. Desks Chairs Chairs Chairs Total Total
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 1,559 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 $ 1,508.00 400.00 $ 1,108.00 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.) For most profitable sales mix 8 hours 166 desks Hours dedicated to the production of each product Units produced for most profitable sales mix. Contribution margin per unit Total contribution margin- $ $ Desks Desks Chairs $ 604.25 270.00 $ 334.25 7 hours 44 chairs The company does not have enough hours to fill maximum demand. Desks Chairs Chairs Chairs Total Total
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