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QUESTION 1 Ocean Inc manufactures picture frames from driftwood in two sizes, small and large. Market demand for the small frames is 1200 units per

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QUESTION 1 Ocean Inc manufactures picture frames from driftwood in two sizes, small and large. Market demand for the small frames is 1200 units per month and demand for the large frames is 200 units per month. Fixed costs for the business per week: $2000. Ocean Inc is located in a remote small town in Nova Scotia, therefore finding qualified workers is challenging. Currently, Ocean employs two full time frame-makers. Each employee manufactures frames for a maximum of 40 hours per week. There are no other potential employees available for hire. Determine the optimal product mix (number of units per week) to maximize Ocean Inc's profit. Small Frame Large Frame Units produced per hour per employee Selling Price $32 75 unit Direct Materials per $10 $60 Direct Labour + variable MOH per unit $5.50 $50 a) What constraints must Ocean Inc consider when deciding on product mix? b) Determine the optimal product mix, in units, to be manufactured per week. Show all work. c) Determine the operating profit for one week using the optimal product mix

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