Sarah has talked with the marketing department about the situation and suggested that the company raise the sales price on the weight bench to $75 to reduce customer demand. The marketing department believes that at the higher price, demand for the weight bench will drop to 5,760 units. How should Sarah allocate the 10,500 machine hours based on this new information?**Machine Hours**- **Dumbbell Rack**: [Input Field]- **Weight Bench**: [Input Field] **Carla Vista Innovations, Inc. Production Overview**Carla Vista Innovations, Inc. specializes in the production of exercise and fitness equipment. Among its products, two newer items require a specialized finishing process that is dependent on newly acquired machinery. These machines are confined to a maximum capacity of 10,500 machine hours, and no other company products utilize them.Sarah Jacob, the operations manager, is tasked with developing the coming month's production schedule. However, she faces a challenge in aligning machine time availability with fulfilling customer demand as projected by the marketing department's sales budget.Michael Stoner, the company’s controller, has compiled the following detailed product information:| **Product** | **Dumbbell Rack** | **Weight Bench** ||----------------------|-------------------|------------------|| **Selling price per unit** | $44 | $60 || **Direct materials** | $19 | $16 || **Direct labor** | $4 | $8 || **Variable overhead** | $3 | $6 || **Fixed overhead** | $5 | $10 || **Profit per unit** | $13 | $20 || **Unit sales demand** | 5,000 | 8,000 || **Machine hours per unit** | 0.75 | 1.5 |This data is crucial for optimizing production schedules to meet demand within machine capacity constraints while maximizing profit margins.

To identify the machine hour we have to firstly calculate the contribution per unit hour. then we…

Sarah has talked with the marketing department about the situation and suggested that the company raise the sales price on the weight bench to $75 to reduce customer demand. The marketing department believes that at the higher price, demand for the weight bench will drop to 5,760 units. How should Sarah allocate the 10,500 machine hours based on this new information? Machine Hours Dumbbell rack Weight Bench

Sarah has talked with the marketing department about the situation and suggested that the company raise the sales price on the weight bench to $75 to reduce customer demand. The marketing department believes that at the higher price, demand for the weight bench will drop to 5,760 units. How should Sarah allocate the 10,500 machine hours based on this new information? Machine Hours Dumbbell rack Weight Bench

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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