Lee-Law Company has met all production requirements for the current month and has an opportunity...

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Accounting

Lee-Law Company has met all production requirements for the current month and has an opportunity to manufacture additional units with its excess capacity. Unit selling prices and unit costs for three product lines follow.

Plain

Regular

Super

Selling Price

80

110

160

Direct material

12

16

20

Direct labor (@ $20 per hour)

30

60

90

Variable overhead

8

12

16

Fixed overhead

6

7

8

Daily demand (units)

18

15

35

Lee-Law Company has 10 direct labor workers assigned to the department and works two shifts per day.

How many units of the super product would Lee-Law Company produce to maximize profits? (round to the whole unit)

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