Aloe Medical Aids Company has 16,000 machine hours available to use to produce either Bandages or Braces. The cost accounting department developed the following unit information for each of the products:

BandagesBraces

Sales priceRM114RM142

Direct materials3842

Direct labor3028

Variable manufacturing overhead1624

Fixed manufacturing overhead612

Machine hours required0.61.2

Management desires to make a decision regarding which product to produce in order to maximise the company's income.

Required:

Taking into consideration the constraint under which the company operates, prepare a report to show which product should be produced and sold. Show your calculation.