Explain how should be sold in order to maximize profits

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Reference no: EM1396156

Q. Kellerman Detailing Service provides two types of car detailing packages: the standard also the deluxe. Selected data related to each package is as follows: Standard Deluxe Sales price $85 $200 Direct materials 5 10 Direct labour 15 40 Variable overhead 5 15 Direct labour hours 2 3 Most of the car detailing is done by hand. Refer to the Kellerman Detailing Service information above. There is a maximum of 4,050 direct labour hours available each year. If demand were equally strong for both packages also the industry could sell an unlimited number of either package, explain how many of which kind(s) of package(s) should be sold in order to maximize profits?

Reference no: EM1396156

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