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Wildhorse Manufacturing produces thermal tents and sleeping bags. The company's products are in high demand due to the quality and durability of the products. Wildhorse

Wildhorse Manufacturing produces thermal tents and sleeping bags. The company's products are in high demand due to the quality and durability of the products. Wildhorse estimates it could sell 600 tents per month and 600 sleeping bags per month. Following is information for each of these products:

Tent Sleeping Bag
Selling price per item $90.00 $65.00
Variable cost per item 77.00 50.00
Contribution margin per item $13.00 $15.00
Machine hours per item 1.00 1.00

Wildhorse has 1012 machine hours available each month. In order to maximize the company's total contribution margin, how should Mallory allocate its production capacity between the tents and sleeping bags?

600 sleeping bags and 412 tents

600 tents and 412 sleeping bags

1012 sleeping bags and 0 tents

1012 tents and 0 sleeping bags.

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