Consider the following production and cost data for two products, X and Y.

	Product X	Product Y
Sales price per unit..........................................	$57	$40
Direct materials cost per unit.......................	$18	$9
Direct labor cost perunit..................................	$15	$11
Variable overhead perunit...............................	$3	$2
Contribution margin per unit (computed with above)	$21	$18
Machine-hours needed per unit.......................	3 hours	2 hours
Monthlydemand..............................................	8,000units	8,000units

The manufacturer normally has 45,000available machine hours each month. However,due to unexpected regulatory changes,only15,000 machine hours will be available in January.

1.Which product should be produced in January (X or Y)to maximize the company's net income for that month? 2. What is the largest possible total contribution margin that can be realized in January?

Put your final answers at the top.Show your work below that.