Question

uRiramour.com Chapter 15-Google Docs Homepage Prin Managerial Search Chp 23 Quiz Quiz Saved Help Seve & Exit Submit Santana Rey has found that Business Solutions's line of computer desks and chairs has become very popular, and she is finding it hard to 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 Variable costs per unit Contribution margin per $1,468.75 $516.00 210.00 550.00 918.75 $306.00 unit Direct labor hours per unit Expected demand for next quarter 7 hours 6 hours 161 desks 47 chairs Santana has determined that she only has 1,337 direct labor hours available for the next quarter and wants to optimize her contribution margin given the limited number of direct labor hours available. Requirec 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 Sales Next> Prev 1 of 1 331 P 11/23 tien UAPCPCOUEKPQ

Answer 1

Desks 1468.75 Chairs 516 210 306.00 550 918.75 Ranking Sno Particulars 1 Selling Price per unit 2 Variable cost per unit 3 Contribution margin per unit 4 Direct labour hours required per unit 5 Expected Demand for next quarter Contribution margin per unit/Direct 6 labour hours required per unit(3/4) 7 Ranking 161 131.25

Sno Desks Chairs Total 1337 Optimum sales Mix Particulars 1 Total Direct labour hours available 2 Direct labour hours required per unit 3 Expected Demand for next quarter Labour hours required [(161*7); (1337-1127] 5 No: Of units(4/2) 161 1127 161 Contribution margin at optimum sales mix Sno Particulars 1 No: Of units 2 Selling Price per unit 3 Variable cost per unit 4 Contribution per unit(2-3) 5 Contribution (1*4) Desks Chairs Total 161 35 1468.75 516 210 918.75 306 147919110710158629 550