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Austin Enterprises makes and sells three types of dress shirts. Management is trying to determine the most profitable mix. Sales prices, demand, and use of

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Austin Enterprises makes and sells three types of dress shirts. Management is trying to determine the most profitable mix. Sales prices, demand, and use of manufacturing inputs follow: Basic $ 32 19,000 Classic Formal Sales price Maximum annual demand (units) Input requirement per unit $ 80 12,000 S 195 29,000 Direct material Direct labor 0.5 yards 0.9 hours 0.3 yards 3 hours 0.6 yards 8 hours Variable costs Materials Direct labor Factory overhead Marketing $19 per yard $15 per hour $3 per direct labor-hour 10 % of sales price Annual fixed costs Manufacturing Marketing Administration $51,000 $8,000 $45,000 The company faces two limits: (1) the volume of each type of shirt that it can sell (see maximum annual demand) and (2) 49,500 direct labor-hours per year caused by the plant layout

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