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Williams Gear makes and sells three types of computer laptop sleeves: leather, fabric, and plastic. Management is trying to determine

the most profitable mix. Sales prices, demand, and use of manufacturing inputs follow:

Williams has two production limits: $(1)$ the demand for the individual sleeves $($see maximum quarterly demand$)$ and $(2)10,170$ direct

labor$-$hours per quarter caused by the physical layout of the production area.

Required:

a$-1.$ Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of sleeve using the table

below.

a$-2.$ How much operating profit could Williams earn if it were able to satisfy the annual demand?

b$-1.$ Compute the contribution margin for each sleeve per the constrained resource, direct labor.

$b-2.$ Which of the three product lines makes the most profitable use of the constrained resource, direct labor?

c$.$ Given the information so far, what product mix do you recommend?

d$-1.$ Calculate the contribution margin for each type of sleeve using the product mix recommended in requirement $c.$

d$-2.$ How much operating profit should your recommended product mix generate?

e$.$ Suppose that the company could expand its labor capacity by leasing a new stitching machine that will free up $2,364$ direct labor

hours per quarter. What is the maximum quarterly lease payment that Williams Gear would be willing to pay?

f$.$ Suppose the company selling the stitching machine is not quite sure without further analysis how many direct labor hours the new

machine would free up$.$ Regardless of the number of new hours, what is the maximum quarterly lease payment Williams Gear would be

willing to pay? Answer is not complete.

Complete this question by entering your answers in the tabs below.

Assuming the company can satisfy the annual demand, calculate the contribution margin for each type of sleeves using the

table below. Answer is not complete.

Complete this question by entering your answers in the tabs below.

Req D$1$

Req D$2$

ReqE

Req F

How much operating profit could Williams earn if it were able to satisfy the annual demand? Answer is not complete.

Complete this question by entering your answers in the tabs below.

Compute the contribution margin for each sleeves per the constrained resource, direct labor. $($Do not round intermediate

calculations. Round your final answers to $2$ decimal places.$)$ Answer is not complete.

Complete this question by entering your answers in the tabs below.

Which of the three product lines makes the most profitable use of the constrained resource, direct labor?

Leather sleeves Answer is not complete.

Complete this question by entering your answers in the tabs below.

Req A$1$

ReqA$2$

Req B$1$

Req B$2$

Req C

Req D$1$

Req D$2$

Req $E$

Req F

Calculate the contribution margin for each type of sleeves using the product mix recommended in requirement c$.($Round down "Units produced" to nearest whole unit and round other intermediate calculation to nearest whole dollar.$)$

$\backslash$table$[[,,$Leather,Fabric,Plastic,Total$],[$Total revenue,,$$,131,776\backslash$times $,$$$,170,613\backslash$times $,$$$,14,402$x$,$$$,316,791\backslash$times $],[$Less variable manufa,,,,,,,,,$],[$Direct labor,$,,,,,,,,],[$Direct materials,grad,,,,,,,,$],[$Variable marketing,grad,,,,,,,,$],[$Total costs,,,$0,,0,,0,,0],[$Contribution margin,,$$,131,776,$$$,170,613,$$$,14,402,$$$,316,791]]$

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