Two of Apples product lines include the iPhone 7 and the iPhone 7 Plus. The following discussion presents hypothetical information assuming that these two product lines are manufactured on the same line and production is constrained by machine hours.

	iPhone 7	iPhone 7 Plus
Selling Price	$1,100	$1,300
Direct Materials	$360	$370
Direct Labour	$130	$140
Variable Overhead	$120	$130
Fixed Overhead	$60	$65
Machine hours per Unit	0.5	0.75

Required:

Assuming there are infinite machine hours, which product line should be the focus of Apple's manufacturing efforts? Why? (3 Marks)

Assuming Apples production was constrained by machine hours, which product line should be the focus of Apple's manufacturing efforts? Why? (3 Marks)

Assuming weekly demand was 2.2 million iPhone 7's and 800,000 iPhone Plus', how many of each type of phone should Apple produce each week? Each week, 1.45 million machine hours are available. (4 Marks)

Ensure that your answers for the above are discussed and supported by relevant calculations/workings.