Question: Please show how to do these questions. Question 4 (20 points) Victory Company produces three product lines, Ample, Basic and Complex. Information about market demand,

Please show how to do these questions.

Please show how to do these questions. Question 4 (20 points) Victory

Question 4 (20 points) Victory Company produces three product lines, Ample, Basic and Complex. Information about market demand, unit selling prices and unit costs for three product lines is as follow. Ample Basic Complex Market Demands Per month (Units) 1,000 2,000 800 Selling price ($) $400 $550 $650 Direct material Cost ($) 120 160 220 Direct labor cost ($) (at $20 per hour) 100 150 200 Variable overhead Cost ($) 80 120 160 Fixed overhead Cost ($) 60 70 80 Variable overhead is applied on the basis of direct labor dollars, whereas fixed overhead is applied on the basis of machine hours. Information about direct labor hours and machine hours required to product each product are as follows: Ample Basic Complex Direct labor hours per unit (Hours) 1.0 1.5 2.0 Machine hours per units (Hours) 1.6 1.5 0.7 Required 4.1. If Victory has excess machine capacity and can add more labor as needed (i.e., neither machine capacity nor labor is a constraint), How many units of Ample, Basic, or Complex the company should produce? How much the maximum contribution margin the company could earn in a month? 4.2. If Victory has excess machine capacity but a limited amount of labor hours. There is only 4,000 direct labor hours available per month. How many units of Ample, Basic, or Complex the company should produce? How much the maximum contribution margin the company could earn in a month under this constraint

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