Sienna's Shades produces standard and deluxe sunglasses: (Click the icon to view the information.) The company...

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Sienna's Shades produces standard and deluxe sunglasses: (Click the icon to view the information.) The company has 16,000 machine hours available. In one machine hour, Sienna's can produce 40 pairs of the standard model or 10 pairs of the deluxe model. Requirement 1. Which model should Sienna's emphasize? First, calculate the total contribution margin at full capacity for each model. Select the labels and calculate the contribution margin at capacity for the standard model, then the deluxe model. Sales price per pair Less: Variable expenses per pair Contribution margin per pair Units produced each machine hour Contribution margin per machine hour Capacity number of machine hours Standard Deluxe 18 28 Data table Standard Deluxe Sales price per pair $ 18 $ 28 Variable expenses per pair 12 22 Sport Sunglasses Information Sienna's incurs the following costs for 21,000 pairs of its sport sunglasses: Direct materials $ 42,000 Direct labor 84,000 Variable manufacturing overhead 105,000 63,000 Fixed manufacturing overhead Total manufacturing cost $ 294,000 21,000 Divided by number of pairs 14 Cost per pair Another manufacturer has offered to sell similar sunglasses to Sienna's for $5 per unit, a total purchase cost of $105,000. If Sienna's outsources and leaves its plant idle, it can save $53,000 of fixed overhead costs. Or it can use the freed manufacturing facilities to make other products that will contribute $60,000 to profits. In this case, the company will not be able to avoid any fixed costs. - X Sienna's Shades produces standard and deluxe sunglasses: Requirement 1. Which model should Sienna's emphasize? First, calculate the total contribution margin at full capacity for each model. Select the labels and calculate the contribution margin at capacity for the standard model, then the deluxe model. Sales price per pair Less: Variable expenses per pair Contribution margin per pair Units produced each machine hour Contribution margin per machine hour Capacity number of machine hours Total contribution margin at full capacity Which model should Sienna's emphasize? Standard Deluxe 18 28 Which model should Sienna's emphasize? Sienna's should emphasize the model. Requirement 2. Sienna's also p analyze the alternatives. What is uct: sport sunglass ction? First, complete the following tabl standard alculator deluxe First, complete the following table. Relevant Costs: Direct materials Direct labor Variable overhead Fixed overhead Purchase cost Total cost of obtaining sunglasses Profit from other products Net cost of obtaining sunglasses Buy Sunglasses Make Other Products Make Facilities Sunglasses Idle Purchase cost Total cost of obtaining su Profit from other product Net cost of obtaining sun What is the best course c Sienna's Shades should make the sunglasses. buy the sunglasses and leave the facilities idle. buy the sunglasses from the outside supplier and use the freed manufacturing facilities to make other products. Sienna's Shades produces standard and deluxe sunglasses: (Click the icon to view the information.) The company has 16,000 machine hours available. In one machine hour, Sienna's can produce 40 pairs of the standard model or 10 pairs of the deluxe model. Requirement 1. Which model should Sienna's emphasize? First, calculate the total contribution margin at full capacity for each model. Select the labels and calculate the contribution margin at capacity for the standard model, then the deluxe model. Sales price per pair Less: Variable expenses per pair Contribution margin per pair Units produced each machine hour Contribution margin per machine hour Capacity number of machine hours Standard Deluxe 18 28 Data table Standard Deluxe Sales price per pair $ 18 $ 28 Variable expenses per pair 12 22 Sport Sunglasses Information Sienna's incurs the following costs for 21,000 pairs of its sport sunglasses: Direct materials $ 42,000 Direct labor 84,000 Variable manufacturing overhead 105,000 63,000 Fixed manufacturing overhead Total manufacturing cost $ 294,000 21,000 Divided by number of pairs 14 Cost per pair Another manufacturer has offered to sell similar sunglasses to Sienna's for $5 per unit, a total purchase cost of $105,000. If Sienna's outsources and leaves its plant idle, it can save $53,000 of fixed overhead costs. Or it can use the freed manufacturing facilities to make other products that will contribute $60,000 to profits. In this case, the company will not be able to avoid any fixed costs. - X Sienna's Shades produces standard and deluxe sunglasses: Requirement 1. Which model should Sienna's emphasize? First, calculate the total contribution margin at full capacity for each model. Select the labels and calculate the contribution margin at capacity for the standard model, then the deluxe model. Sales price per pair Less: Variable expenses per pair Contribution margin per pair Units produced each machine hour Contribution margin per machine hour Capacity number of machine hours Total contribution margin at full capacity Which model should Sienna's emphasize? Standard Deluxe 18 28 Which model should Sienna's emphasize? Sienna's should emphasize the model. Requirement 2. Sienna's also p analyze the alternatives. What is uct: sport sunglass ction? First, complete the following tabl standard alculator deluxe First, complete the following table. Relevant Costs: Direct materials Direct labor Variable overhead Fixed overhead Purchase cost Total cost of obtaining sunglasses Profit from other products Net cost of obtaining sunglasses Buy Sunglasses Make Other Products Make Facilities Sunglasses Idle Purchase cost Total cost of obtaining su Profit from other product Net cost of obtaining sun What is the best course c Sienna's Shades should make the sunglasses. buy the sunglasses and leave the facilities idle. buy the sunglasses from the outside supplier and use the freed manufacturing facilities to make other products.