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MUFC Ltd makes two products, carpet polish and floor deodoriser. Operating information from the previous year is as follows: Carpet polish Floor deodoriser Sales price

MUFC Ltd makes two products, carpet polish and floor deodoriser. Operating information from the previous year is as follows:

Carpet polish Floor deodoriser

Sales price per unit $9.00 $13.00

Variable cost per unit $6.00 $10.00

Units produced and sold 5,000 4,000

Machine hours used 2,000 2,000

Fixed costs of $36,000 per year are at present allocated evenly between both products. If the product mix were to change, total fixed costs would remain the same. Assuming everything produced for either product can be sold, how many units of each product should be produced and sold if machine hours are limited to 10,000 hours?

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