# Testing for occult blood in the stool involves taking a small sample of the stool and combining this

constraint over the short term. For 2010, the company expects to have available 34,000 labor hours..

constraint over the short term. For 2010, the company expects to have available 34,000 labor hours. Th e average hourly labor rate is \$30. Data regarding the current product line follow. Excel 468 Chapter 10 Relevant Information for Decision Making Racing Touring Basic Selling price \$3,600 \$2,720 \$960 Variable costs Direct material \$ 880 \$ 640 \$240 Direct labor 1,500 1,050 300 Variable factory overhead 720 480 164 Variable selling 80 60 40 Fixed costs Factory \$400,000 Selling and

View complete question »                   constraint over the short term. For 2010, the company expects to have available 34,000 labor hours. Th e average hourly labor rate is \$30. Data regarding the current product line follow. Excel 468 Chapter 10 Relevant Information for Decision Making Racing Touring Basic Selling price \$3,600 \$2,720 \$960 Variable costs Direct material \$ 880 \$ 640 \$240 Direct labor 1,500 1,050 300 Variable factory overhead 720 480 164 Variable selling 80 60 40 Fixed costs Factory \$400,000 Selling and administrative 100,000 Th e company pays taxes at the rate of 50 percent of operating income. a. If the company can sell an unlimited amount of any of the products, how many of each product should it make? What pre-tax income will the company earn given your answer? b. How many of each product must the company make if it has the policy to devote no more than 50 percent of its available skilled labor

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