How many of each type of goal should be installed

Assignment Help Accounting Basics

Reference no: EM131977078

Problem

Soccer Products installs standard and deluxe soccer goals. Selected data related to each product is as follows:

	Standard	Deluxe
Sales price per unit	$1,500	$2,000
Direct materials per unit	500	600
Direct labor per unit	250	300
Variable overhead per unit	100	200
Direct labor hours per unit	1/4	1/2

Most of the installation process of the goal is done using direct labor. There are a maximum of 150,000 direct labor hours available each year.

Required:

A. If there is unlimited demand for both products, how many of each type of goal should be installed in order to maximize profits?

B. If the company believes that there is sufficient demand for up to 500,000 standard and 500,000 deluxe goals each year, how many of each type should be installed in order to maximize profits?

Reference no: EM131977078

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