Earth Company makes 2 products, Wind and Fire. Wind has a Contribution Margin per unit of $6.00 and Fire has a contribution margin per unit of $11.00. Earth Company has annual fixed costs of $290,000 units. Assume that there are only 20,000 machine hours available to make the two products. Each unit of Wind takes 2 machine hours and each unit of Fire takes 4 machine hours. Demand for each product is 4,000 units. How many units of each product should be produced?

Answer

	a.	4,000 of each
	b.	4,000 Wind and 3,000 Fire
	c.	2,000 Wind and 4,000 Fire
	d.	3,333 of each