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Hr4Z Company produces and sells two products, P and M. Revenue and cost information for the two products from last month appear below: Product P
Hr4Z Company produces and sells two products, P and M. Revenue and cost information for the two products from last month appear below: Product P Product M selling price per unit ........... $15.00 $12.00 variable costs per unit .......... $ 9.00 $ 7.00 Each month Hr4Z Company has 80,000 direct labor hours available and 60,000 machine hours available. Product P requires 5 direct labor hours for each unit and 2 machine hours for each unit. Product M requires 4 direct labor hours for each unit and 8 machine hours for each unit. Calculate the number of units of Product M that should be produced in order to maximize net income.
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