Peripheral Company produces two products, Product C and Product D.

The selling price for Product C is $46 per unit; the selling price for Product D is $50 per unit.

The variable costs for Product C are $20 per unit; the variable costs Product D are $25 per unit.

Both products use two types of labor, from separate pools of employees: Pool 1 and Pool 2.

For the upcoming accounting period, Pool 1 labor has 12,000 hours available. For the same accounting period, Pool 2 labor has 25,000 hours available.

Product C uses 0.5 hours of Pool 1 laborand1.9 hours of Pool 2 labor.

Product D uses 1 hour of Pool 1 laborand2.2 hours of Pool 2 labor.

Required

Given a short (or even intermediate) term financial perspective, what would you recommend to Peripheral's management regarding how to manage the two sources of labor, assuming that at least one of the two pools of labor is the most constrained resource.

Show calculations to support your answer.