a. Calculate the contribution margin per machine-hour each product; the 6- and 12-gallon compressors.

b. AC Inc. has 1,160 machine hours of capacity available to produce air compressors. Demand is estimated to be 200 units for the 6-gallon compressor and 100 units for the 12-gallon compressor. How many units of each compressor should AC Inc. produce to maximize profits?

c. Other than product mix, what other options or alternatives might managers use to maximize operating income when constraints exist in the manufacturing process?

**Please help with this problem. Can you please show your work so I can understand the answer. Thank you!!**

21. (8 points) AC Inc. manufactures two models of air compressors: 6-gallon and 12-gallon. The following per unit data apply: Per Unit: Selling Price Variable Costs Allocated Fixed Costs Number of machine-hours required 6-Gallon $150 80 20 4 12-Gallon $300 204 35 6