Gametoy produces two types of toys: action figures and dolls. Both types are made using the same machines. It takes 45 minutes of machine time to produce one action figure and takes 30 minutes of machine time to produce one doll. The difference in production time is because action figures have more moveable parts than dolls. The relevant data concerning the two toys are as follows:

	Action Figure $	Doll $
Sales price (per toy)	23	25
Less: Direct Materials	5	7
Direct Labour	3	3
Variable Overhead	4	6
Equals: Contribution Margin per unit	11	9
Divide: Required Machine Time	¾ Hour	½ Hour
Equals: Contribution Margin per Machine Hour	$14.67	$18.00

To maximise overall profit, Gametoy has decided to produce dolls first, as it has the highest contribution margin per machine hour.

Required:  

The total machine time available is 1875 hours per month and the demand for each type of toy is 3000 toys per month, how many dolls

Answer rating: 100% (QA)

Let x d in the number of dolls producedmonth x a in the number or action figure prod... View the full answer