Santana Rey sees that Business Solutions's line of computer desks and chairs is popular, and she is finding it hard to keep up withdemand. Santana only has 1,320 direct labor hours available. She must determine the best sales mix given her limited hours.Information about the desks and chairs follows.DesksChairsSelling price per unitVariable costs per unit$ 1,421.75580.00$ 533.50250.00Contribution margin per unit$ 841.75$ 283.50Direct labor hours per unitMaximum demand per quarter7 hours6 hours162 desks45 chairsRequired:Determine the best sales mix and the contribution margin the business will earn at that sales mix. (Round per unit amounts to 2decimal places.)DesksChairsContribution margin per direct labor hourDesksChairsTotalMaximum number of units to be sold16245Hours required to produce maximum unitsFor most profitable sales mixDesksChairsTotalHours dedicated to the production of each product1,320Units produced for most profitable sales mixContribution margin per unitTotal contribution margin

Desks Chairs Contribution margin per unit (A) $ 841.75 $ 283.50 direct labor…

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 1,320 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 $ 1,421.75 580.00 Chairs $ 533.50 250.00 $ 841.75 $ 283.50 Contribution margin per unit Direct labor hours per unit Maximum demand per quarter hours 6 hours 45 chairs 162 desks 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.) Desks Chairs Contribution margin per direct labor hour Desks Chairs Total Maximum number of units to be sold 162 45 Hours required to produce maximum units For most profitable sales mix Desks Chairs Total Hours dedicated to the production of each product 1,320 Units produced for most profitable sales mix Contribution margin per unit Total contribution margin

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 1,320 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 $ 1,421.75 580.00 Chairs $ 533.50 250.00 $ 841.75 $ 283.50 Contribution margin per unit Direct labor hours per unit Maximum demand per quarter hours 6 hours 45 chairs 162 desks 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.) Desks Chairs Contribution margin per direct labor hour Desks Chairs Total Maximum number of units to be sold 162 45 Hours required to produce maximum units For most profitable sales mix Desks Chairs Total Hours dedicated to the production of each product 1,320 Units produced for most profitable sales mix Contribution margin per unit Total contribution margin

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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