38.

The Dot Company manufactures two products: X and Y. Contribution margin per unit is determined as follows:

	X	Y
Revenue	$130	$80
Variablecosts	50	60
Contributionmargin	$80	$20

Total demand for X is 10,000 units and for Y is 12,000 units. Machine hours are a scarce resource. 30,000 machine hours are available during the year. Product X requires 5 machine hours per unit while product Y requires 1 machine hours per unit.

Required: How many units of X and Y should Dot Company produce to maximize profits? Why?(Make sure you show you work)