The Valor Company Manufactures Two Products: L and M Total Demand for Product L Is 2,000 Units and for and Revenues

Essay

The Valor Company manufactures two products: L and M.The costs and revenues are as follows:
$$\begin{array} { | l r | r | } \hline & \text { Product L } & \text { ProductM } \\\hline \text { Sales price } & \$ 150 & \$ 112 \\\hline \text { Variable cost per unit } & 90 & 68 \\\hline \text { Machine hours per unit } & 15 & 10 \\\hline\end{array}$$

Total demand for Product L is 2,000 units and for Product M is 1,000 units.Machine time is a scarce resource.During the year,36,000 machine hours are available.Required:
a.How many units of Products L and M should Valor produce?