Sales price Maximum annual demand (units) Input requirement per unit Direct material Direct labor Basic Classic $ 30 64 $ 20,000 10,000 Formal 190 30,000 0.5 yards 0.3 yards 0.6 yards 0.7 hours 2 hours 7 hours Costs Variable costs Materials Direct labor Factory overhead Marketing Annual fixed costs Manufacturing Marketing Administration 69 69 69 $ 20 per yard 16 per hour 4 per direct labor-hour 10% of sales price $36,000 $ 8,000 $30,000 Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of dress shirt using the table below. Total revenue Total variable costs Contribution margin Basic Classic Formal 0 0 $ 0 Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E How much operating profit could the company earn if it were able to satisfy the annual demand? Operating profit Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Compute the contribution margin for each shirt per the constrained resource, direct labor. (Do not round intermediate calculations. Round your final answers to 3 decimal places.) Basic Contribution margin Classic Formal Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Which of the three product lines makes the most profitable use of the constrained resource, direct labor? Classic Basic OFormal Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Given the information in the problem so far, what product mix do you recommend? Classic and Basic Basic and Formal Classic and Formal Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Calculate the contribution margin for each type of dress shirt using the table below. (Round down "Units produced" to nearest whole unit.) Total revenue Less variable manufacturing costs: Total costs Contribution margin Basic Classic 0 69 $ 0 0 EA $ 0 Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E How much operating profit should your recommended product mix generate? (Round down "Units produced" to nearest whole unit.) Operating profit Req A1 Req A2 Req B1 Req B2 Req C Req D1 Req D2 Req E Suppose that the company could expand its labor capacity by running an extra shift that could provide up to 10,000 more hours. The direct labor cost would increase from $16 to $19 per hour for all hours of direct labor used during the additional shift. What additional product(s) should Austin manufacture and what additional profit would be expected with the use of the added shift? (Round down "Units produced" to nearest whole number and final answer to 2 decimal places.) Show less Austin should manufacture Additional profit would be