Question

XYZ Company produces two products, A and B. For the coming period, 135,000 machine hours and...

XYZ Company produces two products, A and B. For the coming period, 135,000
machine hours and 175,000 direct labor hours are available. Information on
the two products appears below:

                                           Product A      Product B
contribution margin per unit ...........      $7.00         $6.50
machine hours per unit .................       4.00          6.00
direct labor hours per unit ............       8.00          7.00

Calculate the number of units of Product A that should be produced in order
to maximize net income.

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