1. Surrey Manufacturing Ltd. currently produces three types of sofas, Allie, Benedict, and Carlisle. The primary difference between the products is the material used to upholster the sofas. Allie is upholstered with an imitation leather fabric. For Benedict, the seating area is in genuine leather, and the back of the cushions and sofa are in imitation leather. The Carlisle is upholstered solely in leather. Leather is more difficult to cut and sew than the imitation fabric, but it is more supple and is easier to fit on to the sofa. The following information has been gathered about the construction of the three types of sofas: Allie Benedict Carlisle Cutting time per sofa, in hours 1.5 2.2 3.2 Assembly time per sofa, in hours 4.0 3.8 3.0 Metres of leather per sofa 0 4.0 7.0 Surrey must keep its selling prices competitive, and current selling prices result in a per sofa contribution margin of $750 for Allie, $950 for Benedict, and $1,250 for Carlisle. Surrey has 4,800 hours available in cutting, 10,000 hours available in assembly, and is only able to purchase 8,000 metres of leather annually.