Brandilyn Toy Company Assignment
The Brandilyn 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 the best sales and production mix for the coming year. The company has provided the following data: Demand Selling Next year Price (units) 32,000 $36.00 35.000 $25.00 43,000 $25.00 $21.00 Direct per Unit Materials Labor $3.20 $200 $3.60 $260 Direct Product Marcy Tina $5.40 $2.40 $8.40 $6.60 Carl Lenny 53,000 500,000 S15.00 $200 $240 Sewing kit The following additional Information Is available:
a. The company's plant has a capacity of 167,850 direct labor-hours per year on a single- shift basis. The company's present employees and equipment can produce all five products b. The direct labor rate of $1200 per hour Is expected to remalin unchanged during the coming year c. Fixed costs total $436,000 per year. Variable overhead costs are $200 per direct labor-hour d. All of the company's nonmanufacturing costs are fixed. e. The company's finished goods inventory is negligible and can be ignored. Required: 1. Determine the contribution margin per direct labor-hour expended on each product (Do not round intermediate calculations. Round your answers to 2 decimal places.) Sewing Kit Marcy Tina Cari Lenny Direct labor cost per unit Direct labor-hours per unit Selling price Variable costs Direct materials Direct labor Variable overhead Total variable costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ Contribution margin 0.00 0.00 0.00 0 0 0 0 Contribution margin per DLH 2 Calculate the total direct labor-hours that will be required to produce the units estimated to be sold during the coming year (Do not round intermediate calculations and round “DL hours” answers to 2 decimal places.) DLHS Estimated Total Product Sales (units) Per Unit DLHS Marcy hours Tina hours Cari hours Lenny hours Sewing Kit Total DLHs required 0 4. What is the highest price, In terms of a rate per hour, that Brandilyn Toy Company should be willing to pay for additional capacity (that is, for added direct labor time)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Highest price per hour. .