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Category > Business & Finance Posted 02 May 2017 My Price 8.00

The Walton Toy Company manufactures a line

The Walton Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the dolls is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data:

  

Product

Demand
Next year
(units)

Selling
Price
per Unit

Direct
Materials

Direct
Labor

  Debbie

57,000

$23.00

$5.00   

$1.50   

  Trish

49,000

$ 7.00

$1.80   

$0.60   

  Sarah

42,000

$41.00

$7.49   

$3.00   

  Mike

45,500

$10.00

$2.70   

$2.00   

  Sewing kit

332,000

$ 8.70

$3.90   

$0.35   
 

  

The following additional information is available:

  

a.

The companyAc€?cs plant has a capacity of 80,520 direct labor-hours per year on a single-shift basis. The companyAc€?cs present employees and equipment can produce all five products.

b.

The direct labor rate of $5 per hour is expected to remain unchanged during the coming year.

c.

Fixed costs total $590,000 per year. Variable overhead costs are $2 per direct labor-hour.

d.

All of the company's nonmanufacturing costs are fixed.

e.

The companyAc€?cs finished goods inventory is negligible and can be ignored.

Question :

What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource?

 

 

Answers

Alpha Geek
(8)
Status NEW Posted 02 May 2017 06:05 PM My Price 8.00

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Attachments

file 1493750996-answer1.docx preview (391 words )
T-----------he -----------Wal-----------ton----------- To-----------y C-----------omp-----------any----------- ma-----------nuf-----------act-----------ure-----------s a----------- li-----------ne -----------of -----------dol-----------ls -----------and----------- a -----------dol-----------l d-----------res-----------s s-----------ewi-----------ng -----------kit-----------. D-----------ema-----------nd -----------for----------- th-----------e d-----------oll-----------s i-----------s i-----------ncr-----------eas-----------ing-----------, a-----------nd -----------man-----------age-----------men-----------t r-----------equ-----------est-----------s a-----------ssi-----------sta-----------nce----------- fr-----------om -----------you----------- in----------- de-----------ter-----------min-----------ing----------- an----------- ec-----------ono-----------mic-----------al -----------sal-----------es -----------and----------- pr-----------odu-----------cti-----------on -----------mix----------- fo-----------r t-----------he -----------com-----------ing----------- ye-----------ar.----------- Th-----------e c-----------omp-----------any----------- ha-----------s p-----------rov-----------ide-----------d t-----------he -----------fol-----------low-----------ing----------- da-----------ta:----------- Â----------- Â ----------- P-----------rod-----------uct----------- De-----------man-----------dNe-----------xt -----------yea-----------r(u-----------nit-----------s) -----------Sel-----------lin-----------gPr-----------ice-----------per----------- Un-----------it -----------Dir-----------ect-----------Mat-----------eri-----------als----------- Di-----------rec-----------tLa-----------bor----------- Â----------- Â -----------Deb-----------bie----------- 57-----------,00-----------0 $-----------23.-----------00 -----------$5.-----------00 ----------- Â-----------  $-----------1.5-----------0 Â----------- Â ----------- Â----------- Â -----------Tri-----------sh -----------49,-----------000-----------
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