Santana Rey sees that Business Solutions's line of computer desks and chairs is popular, and she...
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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 1,439 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 direct labor hour Desks $1,351.00 490.00 $ 861.00 Maximum number of units to be sold 7 hours 179 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 $ 629.50 280.00 $ 349.50 Desks 6 hours 41 chairs 179 Chairs Chairs www 41 Total 4 Contribution margin per direct labor hour Maximum number of units to be sold Hours required to produce maximum units For most profitable sales mix Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Desks Desks Desks 179 Chairs Chairs Chairs 41 Total Total 1,439 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 1,439 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 direct labor hour Desks $1,351.00 490.00 $ 861.00 Maximum number of units to be sold 7 hours 179 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 $ 629.50 280.00 $ 349.50 Desks 6 hours 41 chairs 179 Chairs Chairs www 41 Total 4 Contribution margin per direct labor hour Maximum number of units to be sold Hours required to produce maximum units For most profitable sales mix Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin Desks Desks Desks 179 Chairs Chairs Chairs 41 Total Total 1,439
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