Boyd Wood Company makes a regular and a deluxe grade of wood floors. Regular grade is sold at $15 per squareyard, and the deluxe grade is sold at $28 per square yard. The variable cost of making the regular grade is $12 per square yard. It costs an extra $7 per square yard to make the deluxe grade. It takes 25 labor hours to make 100 square yards of the regulargrade, and 30 labor hours to make 100 square yards of the deluxe grade. There are 4,900 hours of labor time available for production each week. The maximum weekly sales for the regular and the deluxe model are 40,000 and 6,000 squareyards, respectively. Fixed production costs total

$600,000 per year. All selling costs are fixed.

Requirement What is the optimal production level in number of square yards for eachproduct?

Begin by calculating the contribution margin per direct labor hour for each product grade. (Abbreviations used: DLH= Direct laborhour)