Nguyen Company produces three different products that all require processing by the same labor.

There are only 33,000 direct labor hours (DLH) available in each year.

Production information for each product is:

Product Widgets Gizmos Thingys

Sales price per unit $24.00 $32.00 $38.00

Variable costs per unit $16.00 $18.50 $22.00

Direct labor hours necessary to produce one unit 3.00 2.50 4.00

Required:

1. Determine the preferred sales mix if there are no market constraints on any of the products

2. Determine the preferred sales mix if the demand is limited to 5,000 units for each product

3. Determine the preferred sales mix if the demand is limited to 4,000 units for each product.