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Grissom Products installs standard and deluxe storage sheds. Selected data related to each product is as follows: Standard Deluxe Sales price per unit $2,000 $4,000

Grissom Products installs standard and deluxe storage sheds. Selected data related to each product is as follows:

Standard

Deluxe

Sales price per unit

$2,000

$4,000

Direct materials per unit

350

600

Direct labor per unit

250

350

Variable overhead per unit

100

200

Direct labor hours per unit

4

6

Most of the installation process of the sheds is done using direct labor. There are a maximum of 24,000 direct labor hours available each year.

Required:

If there is unlimited demand for both products, how many of each type of shed should be installed in order to maximize profits?

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