Santana Rey has found that her 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.
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Santana has determined that she only has 777 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 will earn at that sales mix. (Input all amounts as positive values. Do not round intermediate calculations and round your final answers to 2 decimal places. Omit the "$" sign in your response).