Question
Zing Inc. produces both soft and firm twin-size mattresses. Selected data related to each product is as follows: Soft Firm Sales price per unit $400
Zing Inc. produces both soft and firm twin-size mattresses. Selected data related to each product is as follows: Soft Firm Sales price per unit $400 $500 Direct materials per unit 95 110 Direct labor per unit 35 55 Variable overhead per unit 15 20 Direct labor hours per unit 30 minutes 45 minutes Most of the stuffing process is done by hand. There are a maximum of 2,400,000 direct labor minutes available each year. Required: A. If there is unlimited demand for both products, how many of each type of mattress should be produced in order to maximize profits? B. If the company believes that there is sufficient demand for up to 35,000 soft and 33,000 firm mattresses each year, how many of each type should be installed in order to maximize profits?
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