The Walton Toy Company manufactures a line of dolls and a sewing kit Demand for...
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The Walton Toy Company manufactures a line of dolls and a sewing kit Demand for the company's products 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 datar Next Price year per Direct Direct Debbie Trish Sarah Mike 58,000 $26.00 $5.10 2.10 50,000 7.50 $1.900.78 43,000$41.50$7.643.90 48,000 $11.00 $2.80 2.70 Sewing kit 333,000 8.80 $4.00 0.48 The following additional information is available: es a. The company's plant has a capacity of 92,190 direct labor-hours per year on a single-shift basis.T he company's present employees and equipment can produce all five products b. The direct labor rate of $6 per hour is expected to remain unchanged during the coming year c. Fixed manufacturing costs total $600,000 per year. Variable overhead costs are $3 per direct labor-hour. All of the company's nonmanufacturing costs are fixed. The company's finished goods inventory is negligible and can be ignored. d. e. Required: 1 How many direct labor hours are used to manufacture one unit of each of the company's five products? 2. Ho 3. What is the contribution margin per direct labor-hour for each of the company's five products? much variable overhead cost is incurred to manufacture one unit of each of the company's five products? s is the company's constraining resource. what is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 92.190 direct labor-hours, what is the highest direct labor Walton Toy Company would be willing to pay for additional capacity (that is, for added direct labor time)? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3Required 4 Required 5 How many direct labor hours are used to manufature one unit of each of the company's five products? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Sarah Mike Direct labor hours par unit Required 2>
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