Optimal production plan

ACME Mfg. Co. manufactures two products, Gadgets and Widgets. Each product must pass through two processing operations. All materials enter production at the start of Process # 1. There are no work-in-process inventories. The production of Gadgets and Widgets is subject to the following constraints:

Contribution Process #1 Process # 2 Margin per Unit Hours required to produce one unit: Gadget 1 1 $4.25 Widget 2 3 $5.25 Total capacity per day in hours 1,000 1,275