DownHome Bakery manufactures bagels and muffins. The company estimates that it can sell 150,000 bagels and 200,000 muffins per year. DownHome has 8,000 direct labor hours available each year. Each batch of 48 bagels takes 1.5 direct labor hours, and each batch of 48 muffins takes 1.2 direct labor hours. The following additional information is available:

How should DownHome allocate production capacity between bagels and muffins?

• A :

  200,000 muffins and 96,000 bagels

• B :

  128,000 bagels and 160,000 muffins

• C :

  142,000 of each

• D :

  150,000 bagels and 132,500 muffins