Abbott Suit Corporation (ASC) manufactures BOTH nylon AND cotton jogging suits. On 1/1/18, Erin Rogers ESTIMATES the following costs:

Rent on corporate headquarters $20,000

Salaries for CEO, cost accountant, administrative staff $10,000

Depreciation for cost accountants printer $10,000

Abbott Suit Corporation use MACHINE HOURS TO ALLOCATE OVERHEAD (i.e. its VPDOH = $10/mh).

Erin Rogers, UW-M graduate, creates the following standards for the two jogging suits:

	Nylon Jogging Suits		Cotton Jogging Suits
	Std.qty/suit	Std.price/input	Std.qty/suit	Std.price/input
Direct Materials	2 yds/suit	$10/yd	3 yds/suit	$20/yd
Direct Labor	5 dlh/suit	$8/dlh	4 dlh/suit	$5/dlh
VOH	2 mh/suit	$10/mh	4 mh/suit	$10/mh

Abbott Suit Believes that it can sell Nylon Jogging Suits for $180/suit and Cotton Jogging suits for $280/suit. Abbott Suit has a goal operating income of $60,000 and believe that it will sell 4 times as many Cotton jogging suits as nylon suits.

1. assume that the standards are as they are above AND the machine can ONLY work 7,000 machine hours or it will BREAK! Also assume that the total demand for suits are as follows: nylon 3,000 suits and cotton 3,000 suits. What sales mix will result in the highest operating income? Please show your work.