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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 140 units (each) monthly. Slavin is currently producing 110 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: Alpha Delta Total Price $ 125 $ 155 Less variable costs per unit Material 18.5 33.5 Labor 24.5 36.5 Overhead 17 17 Contribution margin per unit $ 65 $ 68 Fixed costs Manufacturing $ 7,700 Marketing and administrative $ 4,700 $12,400 Machine hours per unit 2.0 2.5 Machine hours used 495 Machine hours available 500 Quantity produced 110 110 Maximum demand 140 140 Profit $2,230 . Required: a. What is the optimal production schedule for Slavin? In other words, how many Alphas and Deltas should the company produce each month to maximize monthly profit? Alphas Deltas units units b. If Slavin produces at the level found in requirement (a), how much will monthly profit increase over the current production schedule? Increases profits by

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