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Mountaineer Products manufactures two types of tents: single-wall and double-wall. Selected data related to each type of tent is as follows:
single-wall double-wall
sales price $250.00 $375.00
Direct materials $25.00 $50.00
Direct labor $20.00 $40.00
Variable overhead $10.00 $15.00
machine hours 2 3
total fixed overhead is $150,000. most of the manufacturing process is done on specialized machines. for the upcoming year, there is a maximum of 9,000 machine hours available. management believes there is sufficient demand for 3,000 single-wall and 4,000 double-wall tents each year
Refer to the mountaineer products information above. in order to maximize profits, how many of each type of tent should be produced?
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