o keep up with demand. She knows that she cannot fill all of her orders for both items, so she decides she must determine the optimal sales mix given the resources she has available. Information about the desks and chairs follows.

	Desks			Chairs
Selling price per unit	$	1,245.50		$	568.75
Variable costs per unit		440.00			290.00
Contribution margin per unit	$	805.50		$	278.75
Direct labor hours per unit		6	hours		5	hours
Expected demand for next quarter		164	desks		54	chairs

Santana has determined that she only has 1,179 direct labor hours available for the next quarter and wants to optimize her contribution margin given the limited number of direct labor hours available. Required: Determine the optimal 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 unit	$805.50	$278.75
Direct labor hours per unit	6	5
Contribution per direct labor hour	$134.25	$55.75
	Desks	Chairs	Total
Maximum number of units to be sold	164	54
Hours required to produce maximum units
For most profitable sales mix
	Desks	Chairs	Total
Hours dedicated to the production of each product			1,179
Units produced for most profitable sales mix
Contribution margin per unit
Total contribution margin