Mifflin Products, Inc., has 3,200 machine hours of plant capacity available for anufacturing two products with the following characteristics:
|
X |
Y |
|
|
Selling price |
$200 |
$165 |
|
costs: |
||
|
Direct materials |
$80 |
$40 |
|
Direct labor |
40 |
35 |
|
Variable overhead* |
15 |
30 |
|
Fixed overhead* |
10 |
20 |
|
Operating expenses (all variable) |
40 |
20 |
|
$185 |
$145 |
|
|
Net income |
$15 |
$20 |
*Applied on the basis of machine hours.
Compute the number of available machine hours that Mifflin Products, Inc., should devote to the manufacture of each product.