Dalton Inc. produces and sells three products. Unit data concerning each product is shown below.

		Product
		D		E		F
Selling price		$200		$300		$250
Direct labor costs		25		75		30
Other variable costs		112		90		148

The company has 2,000 hours of labor available to build inventory in anticipation of the companys peak season. Management is trying to decide which product should be produced. The direct labor hourly rate is $10.

1) if the company can sell all the products it can make, determine which products should be produced and the total contribution of that product.

2) If a minimum of 10 and a maximum of 500 units should be produced for each product, determine how many of each product to be made.

3) if additional 525 direct labor hours can be purchased, what is the maximum hourly rate that Dalton inc. should pay?