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SimplengTaksil Company produces furniture. It has four products, tables, chairs, cabinets and bookshelves. It has 50,000 direct labor hours available. Below are the details pertaining to each product:                            Table              Chairs         Cabinets          Bookshelves CM/Unit              P25                  P20              P28                  P24 DLH/Units       5 hours             2 hours        7 hours             5 hours Maximum      3,500 units     12,000 units   5,000 units       3,000 units demand   What will be the highest contribution margin if we prioritize the products properly?

SimplengTaksil Company produces furniture. It has four products, tables, chairs, cabinets and bookshelves. It has 50,000 direct labor hours available. Below are the details pertaining to each product:                            Table              Chairs         Cabinets          Bookshelves CM/Unit              P25                  P20              P28                  P24 DLH/Units       5 hours             2 hours        7 hours             5 hours Maximum      3,500 units     12,000 units   5,000 units       3,000 units demand   What will be the highest contribution margin if we prioritize the products properly?

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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  1.  SimplengTaksil Company produces furniture. It has four products, tables, chairs, cabinets and bookshelves. It has 50,000 direct labor hours available. Below are the details pertaining to each product:

 

                         Table              Chairs         Cabinets          Bookshelves

CM/Unit              P25                  P20              P28                  P24
DLH/Units       5 hours             2 hours        7 hours             5 hours
Maximum      3,500 units     12,000 units   5,000 units       3,000 units
demand

 

What will be the highest contribution margin if we prioritize the products properly?

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