David's Robotics is examining two of its products, Calculon Model and Bender Model. The following information is being reviewed:

Required:
1. Which item should David's manufacture if there is no constraint on hours of production?
2. If full production capacity is 1,500 hours, and if David's can sell all the units it makes, which item should it manufacture?Why?

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Bender Calculon Model Model Unit selling price. Materials required per unit Direct labor required per unit $28.50 S3.00 $2.50 $0.50 1.5 $21.00 $1.25 Variable manufacturing overhead per unit Production time per unit (in hours) $1.00