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Slavin Corporation manufactures two products, Alpha and Delta. Each product requires time on a single machine. The machine has a monthly capacity of 500 hours.

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Slavin Corporation manufactures two products, Alpha and Delta. Each product requires time on a single machine. The machine has a monthly capacity of 500 hours. Total market demand for the two products is limited to 160 units (each) monthly. Slavin is currently Alphas and 110 Deltas each month. Cost and machine-usage data for the two products are shown in the following table which Slavin managers use for planning purposes. Total Alpha $ 123 Delta $ 150 17.5 23.5 32.5 35.5 Price Less variable costs per unit Material Labor Overhead Contribution margin per unit Fixed costs Manufacturing Marketing and administrative 16 $ 66 $ 7,500 $ 4,500 $12,000 2.0 2.5 Machine hours per unit Machine hours used Machine hours available Quantity produced Maximum demand Profit 495 500 110 160 $2,190 110 160 Required: a. What is the optimal production schedule for Slavin? In other words, how many Alphas and Deitas should the company produce each month to maximize monthly profit? b. W Slavin produces at the level found in requirement how much will monthly profit increase over the current production schedule? Complete this question by entering your answers in the tabs below. Required A Required B

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