Skiing Accessories has 3,000 machine hours of plant capacity available for manufacturing sun goggles. Following is information about these products.

Premium Regular

Selling price per unit $50 $30

Variable cost per unit $35 $10

Units that can be manufactured per machine

hour on the same production line 8 5

Estimated demand 12,000 goggles 21,000 goggles

How many machine hours should be devoted to the manufacture of each product?

• What is the maximum amount that Skiing Accessories would be willing to spend, both per hour and in total, to increase capacity?