Based on Sartoris and Spruill (1974). Wivco produces two products, which it sells for both cash and credit.

Revenues from credit sales will not have been received but are included in determining profit earned during the current six-month period. Sales during the next six months can be made either from units produced during the next six months or from beginning inventory.

Relevant information about products 1 and 2 is as follows.

■ During the next six months, at most 150 units of product 1 can be sold on a cash basis, and at most 100 units of product 1 can be sold on a credit basis. It costs $35 to produce each unit of product 1, and each sells for $40. A credit sale of a unit of product 1 yields $0.50 less profit than a cash sale

(because of delays in receiving payment). Two hours of production time are needed to produce each unit of product