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Doug's Company has two products, X and Y. Both product X and product Y are produced on the same machine. The maximum operating capacity of
Doug's Company has two products, X and Y. Both product X and product Y are produced on the same machine. The maximum operating capacity of the machine is 5,500 hours. Product X requires three hours of machine time, while Product Y requires five hours of machine time. Other information regarding Product X and Product Y : Product X requires 2.5 direct labour hours and product Y requires 1.5 direct labour hours. Total fixed manufacturing costs for the year are $22,000. The demand for Product X is 600 units and the demand for Product Y is un limited. Fixed selling and administration costs are $8,000. Required: What is the optimum production quantity of Product X and Product Y
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