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HH Corp manufactures and sells brushes and combs. The company can sell all of either product it can make. The following data are pertinent to
HH Corp manufactures and sells brushes and combs. The company can sell all of either product it can make. The following data are pertinent to each respective product: Brushes Combs Units of output per machine hour 8 20 Unit selling price $12.00 $4.00 Unit product cost: Direct material $1.00 $1.20 Direct labour $2.00 $0.10 Variable overhead $0.50 $0.03 Total fixed overhead is $380,000 The company has 40,000 machine hours available for production. Required: (2) Calculate Net Income for each sales mix provided below: a. 320,000 brushes and 0 combs b. 0 brushes and 800,000 combs c. 160,000 brushes and 600,000 combs d. 252,630 brushes and 252,630 combs and State what sales mix maximizes net income without violating the machine hours constraint
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