Problem 2. Baubles for Barbie is a jewelry maker that sells its products to retailers in the local tourist area. It makes a wide variety of products. Two of its best sellers are necklaces and a pair of matching earrings. Both are made from Dunovite, a rare mineral found only on the beaches of Lake Erie, with a cost of $3.60 per ounce. Information about the two items follows (note that OH is applied on the basis of DM$):

Necklace Earrings

SP $100 $65

Demand 2,000 900

DM $13.20 $5.60

DL 5.40 7.20

VOH 1.32 .56

FOH 5.28 2.24

Ounces of Dunovite 1.5 1.1

Recently, the government has imposed strict limits on the harvesting of Dunovite. Baubles will only be able to get 1,200 ounces per year.

Based only on short term financial considerations, how many necklaces and how many earrings should the firm make. Show supporting computations.