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Soccer Products installs standard and deluxe soccer goals. Selected data related to each product is as follows: Standard Deluxe Sales price per unit $2,000 $2,500

Soccer Products installs standard and deluxe soccer goals. Selected data related to each product is as follows:

Standard

Deluxe

Sales price per unit

$2,000

$2,500

Direct materials per unit

500

500

Direct labor per unit

300

200

Variable overhead per unit

100

100

Direct labor hours per unit 1/4

1/2

Most of the installation process of the goals are completed using direct labor. There are a maximum of 250,000 direct labor hours available each year. Required:

A. If there is unlimited demand for both products, how many of each type of goal should be installed in order to maximize profits?
B. If the company believes that there is sufficient demand for up to 500,000 standard and 500,000 deluxe goals each year, how many of each type should be installed in order to maximize profits?

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