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The Winwood Company manufactures two products: Q and T. The costs and revenues are as follows: Product Q | Product T Sales price $162.00 | $100.00...
| Product T
Sales price $162.00 | $100.00
Variable cost per unit 86.00 | 48.00
Total demand for Product Q is 15,200 units and for Product T is 10,200 units. Machine time is a scarce resource. During the year, 55,200 machine hours are available. Product Q requires 5.00 machine hours per unit, while Product T requires 3.00 machine hours per unit.
How many units of Products Q and T should Winwood produce?
Product Q|Product T
a.15,200 | 0
b.8,907 | 4,754
c.12,000 | 0
d.4,920 | 10,200