The Brandilyn Toy Company manufactures a line of dolls and a doll dress sewing k
ID: 2380713 • Letter: T
Question
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:
Product Demand
Next year
(units) Selling
Price per Unit
DirectMaterials
Direct Labor
Marcy 27,000 $36.00 $2.50 4.80
Tina 46,000 $26.00 $3.10 $2.40
Cari 33,000 $18.00 $4.70 $7.80
Lenny 41,000 $14.00 $2.60 $6.60
Sewing kit 490,000 $17.00 $1.50 $1.80
The following additional information is available:
a.
The company
Explanation / Answer
1.
CONTRIBUTION MARGIN PER DIRECT LABOUB HOUR:
LABOUR HOUR USED IN MAKING ONE UNIT =1/12*DIRECT LABOUR HR COST PER UNIT
MARCY=1/12*4.8=0.4HR.
TINA=1/12*2.4=0.2HR.
CARI=1/12*7.8=0.65HR.
LANNY=1/12*6.6=0.55HR.
SEWING=1/12*1.8=0.15HR.
PARTICULAR MARCY TINA CARI LANNY SEWIN
SP 36 26 18 14 17
LESS:DM 2.5 3.1 4.7 2.6 1.5
DL 4.8 2.4 7.8 6.6 1.8
CONTRI. 28.7 20.5 8.8 4.8 13.7
C/HR. 71.75 102.5 13.5 8.73 91.33
2.
FROM STEP 1 WE HAVE HR REQUIRED TO MANUFACTURE ONE UIT OF EACH TYPE OF DOLL.
SO USING THAT WE CAN CACLCULATE TOTAL NO. OF HR.
MARCY=27000*0.4=10800HR.
TINA=46000*0.2=9200HR.
CARI=33000*0.65=21450HR.
LANNY=41000*0.55=22550HR.
SEWING=490000*0.15=73500HR.
TOTAL DLHS REQUIRED=137500HR.
4.
ACCORDING TO STEP 1 WE WOULD RANK THE PRODUCTS
MARCY TINA CARI LANNY SEWING
3 1 4 5 2
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