Question
Kellerman Detailing Service provides two types of car detailing packages: Standard and Deluxe . Selected data related to each package is as follows: Standard and
Kellerman Detailing Service provides two types of car detailing packages: Standard and Deluxe. Selected data related to each package is as follows:
Standard and Deluxe sale prices $85 and $200; direct materials 5 and 10; direct labor 15 and 40; variable overhead 5 and 15; and direct labor hours 2 and 3, respectively. Most of the car detailing is done by hand. Refer to the Kellerman Detailing Service information above. A maximum of 4,050 direct labor hours are available each year. If demand is equally strong for both packages and the company could sell an unlimited number of either package, how many of which kind(s) of package(s) should be sold in order to maximize profits?
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