NK Co. manufactures two types of women's coats: Model 1 and Model 2. Cost and revenue data for each model is shown below:

Per Unit	Model 1	Model 2
Selling price	$60	$90
Direct material cost	$27	$14
Direct labour cost	$12	$32
Variable MOH	$3	8
Contribution margin

The plant that makes these coats is operating at capacity. The company is currently using all of the available sewing machine hours which is 15,000 hours per month. Model 2 requires 4 hours of sewing machine time (there's more pockets and zippers on this model) while Model 1 requires 1.5 hours of sewing machine time. Demand is 3,500 and 4,500 units for Model 1 and Model 2 respectively. Required: a. How many machine hours are required to meet demand?

b. Which model should the company focus on given the constraint with machine hours? Use calculations to support your answer.

c. How much would the company be willing to pay per hour to obtain additional machine hours?

d. Identify 1 method for obtaining additional machine hours.