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Toppers produces two models of hats, fedoras and berets, both made out of cool skin felt fabric. Information regarding the products is summarized for the

Toppers produces two models of hats, fedoras and berets, both made out of cool skin felt fabric. Information regarding the products is summarized for the month of May in the following table:

Fedoras

Berets

Number of hats produced

1,000 4,000

Sales revenue

$28,000 $72,000

Variable costs

12,000 36,000

Fixed costs

3,200 7,000

Net Income

$12,800 $29,000

Yards of fabric per unit

0.80 yds. 0.40 yds.

Profit per unit

$12.80 $7.25

Due to increased demand of hat felt in the market, Toppers can obtain only 3,800 yards of felt per month. Toppers can sell as many hats as it can produce, however, it must produce at least 800 of each to stay competitive. How many of each model of hat should Toppers make to maximize profit in June?

Fedoras Berets

Number of Hats

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