Required information [The following information applies to the questions displayed below.] A company produces two products. Product 1 sells for $175 and Product 2 sells for $135. Each product uses only one type of raw material that costs $5 per pound. The company has the capacity to annually produce 117,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Product Product 1 2 $ 40 $ 15 30 30 18 16 26 29 23 19 26 21 $163 $130 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Consider each of the following questions separately. 7. The company's customers will buy a maximum of 91,000 units of Product 1 and 71,000 units of Product 2. If there are only 225,000 pounds of raw material available for production, how many units of each product should be produced to maximize profits? Units produced Product 1 Product 2