13P7.55B (L0 7) Benkhadour Co. manufactures four different products. Because the quality of its products is high, the demand for them is greater than the company can satisfy. Based on the inquiries made by Current and potential customers, you have est for the coming year: imated' the following Estimated Selling Price Direct Materials Direct Labour Product Demand in Units per Unit Cost per Unit Cost per Unit A . 8,000 $ 50 $ 5 $ 5 B 24,000 60 10 9 C 20,000 150 25 30 D 30,000 100 15 20 The following information is also available: 1. The direct labour rate is $15 per hour and the factory has a capacity of 80,000 hours. For the next year, Benkhadour is unable to expand this capacity. ' 2. Benkhadour is unwilling to increase its selling prices. 3. Apart from direct materials and direct labour, the only other variable expense is variable overhead. The variable overhead is 50% of the direct: labour cost. 4. Fixed manufacturing overhead is estimated to oe ill stallion for the coming year. Fixed marketing and administrative expenses are estimated to or. it #359,000 ler the coming year. Instructions Determine which products and how many units of each Benkhadour should produce in the coming year in order to maximize its operating income. ._ _.-_ . 2 . .. A. . n . u 1.. .. -.-.~ _ _ _