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)
|
40
|
20
|
|
$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.