Waterway Industries can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution margin of $90 and takes two machine hours to make and Fancy has a unit contribution margin of $117 and takes three machine hours to make. There are 2400 machine hours available to manufacture a product. What should Waterway do?

The same total profits exist regardless of which product is made.

Make Plain which creates $6 more profit per machine hour than Fancy does.

Make Fancy which creates $18 more profit per unit than Plain does.

Make Plain because more units can be made and sold than Fancy.