Gulf Breeze Corporation produces three products for water skiing enthusiasts: life vests, tow ropes, and water skis. Information relating to each product line is as follows.

	Life Vests				Tow Ropes				Water Skis
Selling price	$	58			$	25			$	175
Direct materials		12				3				75
Direct labor		20				10				80
Variable overhead		6				2				4

Gulf Breeze pays its direct labor workers an average of $10 per hour. At full capacity, 65,000 direct labor hours are available per year. The marketing department has just released the following sales estimates for the upcoming year: life vests (25,000 units), tow ropes (15,000 units), and water skis (5,000 units). Based on these figures, demand for the current year is expected to exceed the company's direct labor capacity.

a-1. Calculate the total hours required to meet demand of each products.

	Life Vests	Tow Ropes	Water Skis
Total hours required

a-2. What products should Gulf Breeze produce to maximize its operating income?

What products should Gulf Breeze produce to maximize its operating income?

Gulf Breeze should produce