Show which product should be produced and sold

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Reference no: EM132932130

Parker Co. has 4,000 machine hours available to produce either Product 22 or Product 44. The cost accounting department developed the following unit information for each product:

                                                        Product 22                      Product 44
Sales price                                    $27                            $50
Direct materials                                6                               8
Direct labor                                       3                               2
Variable manufacturing overhead           4                                  5
Fixed manufacturing overhead                    3                               5
Machine time required                         20 minutes                 60 minutes

Instructions

Problem 1: Management wants to know which product to produce in order to maximize the company's income. Taking into consideration the constraints under which the company operates, show which product should be produced and sold.

Reference no: EM132932130

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