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Problem 1: Jones manufactures 2 products: pants and shirts. Pants have a selling price of $50 and a variable cost per unit of $26. Shirts have a selling price of $40 and a variable cost per unit of $30. Pants require 0.80 machine-hours per unit, whereas shirts require 0.20 machine-hours per unit. The company's fixed costs average $120,000 per month. Monthly demand for both products exceeds the company's output capacity. If the company has only 4,000 machine-hours (MH) available per month, the maximum amount of operating income it can earn is
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