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. Selling price per unit Variable costs per unit Contribution margin per unit Direct labor hours per unit Expected demand for next quarter Desks $950.00 430.00 $520.00 Contribution margin per unit Contribution per direct labor hour 4 hours 162 desks Maximum number of units to be sold Hours required to produce maximum units Santana has determined that she only has 765 direct labor hours available for the next quarter and wants to optimize her contribution margin given the limited number of direct labor hours available. Required: 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 $452.75 290.00 $162.75 Desks 3 hours 50 chairs 162 Chairs Chairs 50 Total

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