The Super Clean Floor Company makes two products, carpet cleaner and floor deodoriser. Operating information from the previous year is as follows:

	Carpet Cleaner	Floor Deodoriser
Selling price per unit	$7.00	$10.00
Variable costs per unit	$4.00	$8.00
Units produced and sold	5,000	4,000
Machine hours used	5,000	2,000

Fixed costs of $20,000 per year are currently allocated evenly between both products. If the product sales mix were to change, total fixed costs would remain at $20,000 per year. Assuming everything produced for either product can be sold, how many units of each product should be produced and sold if machine hours are limited to 10,000?

Choose one answer.

a.

8,000 units of carpet cleaner and 8,000 units of floor deodoriser.

b.

5,000 units of carpet cleaner and 10,000 units of floor deodoriser.

c.

10,000 units of carpet cleaner and 0 units of floor deodoriser.

d.

8,000 units of carpet cleaner and 4,000 units of floor deodoriser.

e.

0 units of carpet cleaner and 20,000 units of floor deodoriser.