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The Mad Hatter Company owns a machine that manufactures two types of chimney caps. Production time is 0.20 hours for cap A and 0.40 hours

The Mad Hatter Company owns a machine that manufactures two types of chimney caps. Production time is 0.20 hours for cap A and 0.40 hours for cap B. The machine's capacity is 2,000 hours per year. Both products are sold to a single customer who has agreed to buy all of the company's output up to a maximum of 1,000 units of cap A and 6,000 units of cap B. Selling prices and variable costs per unit are shown below. Based on this information, what is Mad Hatter's most profitable sales mix?

Cap A Cap B
Selling price per unit $ 80 $ 60
Variable costs per unit 53 42

a.10,000 units of cap A.

b.5,000 units of cap B.

c.1,000 units of cap A and 5,000 units of cap B.

d.1,000 units of cap A and 6,000 units of cap B.

e.1,000 units of cap A and 4,500 units of cap B.

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