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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 1,644 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 Desks $ 1,648.00 550.00 Chairs $ 582.00 190.00 Contribution margin per unit $ 1,098.00 $ 392.00 Direct labor hours per unit Maximum demand per quarter 8 hours 174 desks 7 hours 47 chairs Required: Determine the best sales mix and the contribution margin the business will earn at that sales mix. Note: Round per unit amounts to 2 decimal places. Desks Chairs Contribution margin per direct labor hour Desks Chairs Total 174 47 Maximum number of units to be sold Hours required to produce maximum units For most profitable sales mix Desks Chairs Total Hours dedicated to the production of each product 1,644 Units produced for most profitable sales mix Contribution margin per unit Total contribution margin 1 Check my work

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 1,644 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 Desks $ 1,648.00 550.00 Chairs $ 582.00 190.00 Contribution margin per unit $ 1,098.00 $ 392.00 Direct labor hours per unit Maximum demand per quarter 8 hours 174 desks 7 hours 47 chairs Required: Determine the best sales mix and the contribution margin the business will earn at that sales mix. Note: Round per unit amounts to 2 decimal places. Desks Chairs Contribution margin per direct labor hour Desks Chairs Total 174 47 Maximum number of units to be sold Hours required to produce maximum units For most profitable sales mix Desks Chairs Total Hours dedicated to the production of each product 1,644 Units produced for most profitable sales mix Contribution margin per unit Total contribution margin 1 Check my work

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 1,644 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 Desks $ 1,648.00 550.00 Chairs $ 582.00 190.00 Contribution margin per unit $ 1,098.00 $ 392.00 Direct labor hours per unit Maximum demand per quarter 8 hours 174 desks 7 hours 47 chairs Required: Determine the best sales mix and the contribution margin the business will earn at that sales mix. Note: Round per unit amounts to 2 decimal places. Desks Chairs Contribution margin per direct labor hour Desks Chairs Total 174 47 Maximum number of units to be sold Hours required to produce maximum units For most profitable sales mix Desks Chairs Total Hours dedicated to the production of each product 1,644 Units produced for most profitable sales mix Contribution margin per unit Total contribution margin 1 Check my work
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 1,644 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 Desks $ 1,648.00 550.00 Chairs $ 582.00 190.00 Contribution margin per unit $ 1,098.00 $ 392.00 Direct labor hours per unit Maximum demand per quarter 8 hours 174 desks 7 hours 47 chairs Required: Determine the best sales mix and the contribution margin the business will earn at that sales mix. Note: Round per unit amounts to 2 decimal places. Desks Chairs Contribution margin per direct labor hour Desks Chairs Total 174 47 Maximum number of units to be sold Hours required to produce maximum units For most profitable sales mix Desks Chairs Total Hours dedicated to the production of each product 1,644 Units produced for most profitable sales mix Contribution margin per unit Total contribution margin 1 Check my work
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