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(This serial problem began in Chapter I and continues through most of the book. If...

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Accounting

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(This serial problem began in Chapter I and continues through most of the book. If previous chapter seg SERIAL PROBLEM ments were not completed, the serial problem can begin at this point.) Business Solutions SP 10 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. A1 Desks Chairs Selling price per unit Variable costs per unit.. Contribution margin per unit. . Direct labor hours per unit Expected demand for next quarter $1,125 500 375 200 s 625 $175 4 hours 175 desks 50 chairs 5 hours Santana has determined that she only has 1,015 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 wil: earn at that sales mix

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