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2. Owly Corporation's Cherry Point, North Carolina factory produces chairs and sofas. The upholstery machine is used on both products. The factory has 1,000 hours

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2. Owly Corporation's Cherry Point, North Carolina factory produces chairs and sofas. The upholstery machine is used on both products. The factory has 1,000 hours a year in unused capacity on the upholstery machine. Each chair sells for $1,375 and each sofa sells for $2,100. A chair takes 15 minutes of machine time to upholster and a sofa takes 45 minutes machine time to upholster. The variable expense ratio is 70% for chairs and the variable expense ratio for sofas is 75%. There is enough demand to make as many chairs or sofas as possible. A. What is the additional net operating income if Owly uses the 1,000 hours to make sofas? B. What is the additional net operating income if Owly uses the 1,000 hours to make chairs

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