Santana Rey sees that Business Solutions's line of computer desks and chairs is popular, and she is finding it hard to keep up with demand. Santana only has 1,644 direct labor hours available. She must determine the best sales mix given her limited hours. Information about the desks and chairs follows. Selling price per unit Variable costs per unit Desks $ 1,648.00 550.00 Chairs $ 582.00 190.00 Contribution margin per unit $ 1,098.00 $ 392.00 Direct labor hours per unit Maximum demand per quarter 8 hours 174 desks 7 hours 47 chairs Required: Determine the best sales mix and the contribution margin the business will earn at that sales mix. Note: Round per unit amounts to 2 decimal places. Desks Chairs Contribution margin per direct labor hour Desks Chairs Total 174 47 Maximum number of units to be sold Hours required to produce maximum units For most profitable sales mix Desks Chairs Total Hours dedicated to the production of each product 1,644 Units produced for most profitable sales mix Contribution margin per unit Total contribution margin 1 Check my work

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Gadubhai

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Rahul

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Bluebell Ltd is a small company making gadgets.  Two models are made: E_bell and D_bell. Both products require the same skilled labour which is limited.   Information/data:   E_bell D_bell   Selling Price     £150 £190   Variable Costs     £110 £120   Direct labour hours per unit   4 6 Hours Direct labour hours available (per week) 900 Hours   Maximum demand   100 140   Fixed overheads (per week)   £4,000       a). If products can be sold up-to their max demand. What will be the maximum profit?

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