The Walton Toy Company manufactures a line of dolls and a doll dress sewing kit.
ID: 2468862 • Letter: T
Question
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:
The company’s plant has a capacity of 120,140 direct labor-hours per year on a single-shift basis. The company’s present employees and equipment can produce all five products.
The company’s finished goods inventory is negligible and can be ignored.
What is the highest price, in terms of a rate per hour, that Walton Toy Company would be willing to pay for additional capacity (that is, for added direct labor time)? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
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:
Explanation / Answer
Product
Product
Product
Working:
Maximum labour rate is contribution per hour on Milke i.e $7.62 per DLH
Product
Contribution Margin per DLH Debbie $ 29.91 Trish $ 17.00 Sarah $ 26.01 Mike $ 7.62 Sewing Kit $ 30.64Related Questions
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