3-46 Product mix decision Boyd Wood Company makes a regular and a deluxe grade of wood floors. (LO2, 3 The regular grade is sold at $16 per square yard, and the deluxe grade is sold at $25 per square yard. The variable cost of making the regular grade is $10 per square yard. It costs an extra $5 per square yard to make the deluxe grade. It takes 0.15 labor hours to make 1 square yard of the reg- ular grade and 0.20 labor hours to make 1 square yard of the deluxe grade. There are 4,600 hours of labor time available for production each week. The maximum weekly sales for the regular and the deluxe models are 30,000 and 8,000 square yards, respectively. Fixed production costs total $600,000 per year. All selling costs are fixed. Required What is the optimal production level in number of square yards for each product