Problem 3 Tower Company produces two types of gloves, G1 and G2. The cost and production data concerning these two products are as follows: G1 G2 Selling price P12.00 P14.00 Manufacturing costs: Materials 1.50 Labor 3.00 6.00 Fixed overhead 2.50 5.00 Gross margin per unit P 2.50 P 1.50 Required production time/unit 2 hours 2 hours 4.00 Total production time available is 2,500 hours per month. Since production time is limited and gross margin unit for GI is higher than for G2, Tower Company management decided to produce and sell G1 exclusively. Required: Did Tower Company management make the correct decision