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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)
$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.
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