a.) what is the optimal production schedule for LMC? In other words how many standard units and custom units should the company produce each month to maximize monthly profits

b.)if LMC produce is at the level found in requirement (a), how much will monthly profit increase over the current production schedule?

Price Layton Machining Company (LMC) manufactures two versions of a basic machine tool. One version is a standard model and one is a custom model, which requires some additional work and slightly higher-grade materials. The manufacturing process at LMC requires that each product go through two departments, Grinding and Finishing. The process in each department uses a single type of machine. Total machine capacity in Grinding is 81,000 hours, and in Finishing, total machine capacity is 61,500 hours. (Each department has multiple machines.) Total market demand is limited to 162,000 standard units and 182,000 custom units monthly LMC is currently producing 152,000 standard units and 114,500 custom units each month. Cost and machine- usage data for the two products follow: Standard Custom Total $ 8.10 $ 10.10 Less variable costs per unit Material 2.20 2.70 Labor 1.95 2.20 Overhead 2.45 3.20 Contribution margin per unit 1.50 $ 2.00 Fixed costs Manufacturing $ 90,000 Marketing and administrative 51,000 $141.000 Grinding machine hours per unit 0.2 0.3 Finishing machine hours per unit 0.1 0.4 Grinding machine hours used 64.750 Grinding machine hours available 81,000 Finishing machine hours used 61,000 Finishing machine hours available 61,500 Quantity produced 152,000 114,500 Maximum demand 162,000 182,000 Profit $316,000 $