Question: Please provide answers with steps Test 2 [7 marks] Sweet Lily and Co is an Ottawa-based small business that manufactures high quality candles made with
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Test 2 [7 marks] Sweet Lily and Co is an Ottawa-based small business that manufactures high quality candles made with 100% natural soy wax vered and essential oils. The product line of Sweet Lily includes Citrus Oak candle, Peach and Lavender candle and Honey Fig and Ginger candle. Unit data concerning each product is shown below. of Product stion Citrus Oak Peach Honey Lavender Fig and Ginger Selling price $22.00 $24.00 $38.00 Direct labour costs 12.80 17.60 23.20 Other variable costs 4.20 2.00 7.20 The company has 3,400 hours of labour available to build inventory before the holiday shopping season. Management is trying to decide which product should be produced in order to maximize the company's income. The direct labour hourly rate is $16. Instructions Management wants to know which product to produce in order to maximize the company's income. Taking into consideration the constraints (e;g. limited resources) under which the company operates, show which product should be produced and sold, and what the total contribution margin for that product would be. (7 marks) Paragraph B
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