Short-Term Product-Mix Decision DVD Production Company produces two basic types of video games, Flash and Clash Pertinent data for DVD Production Company follow: Sales price Costs Direct materials Direct labor (@ $25/hour) Variable factory overhead" Fixed factory overhead Marketing costs (all fixed) Total costs Operating profit Flash $340 Closh $ 190 70 35 100 50 70 50 40 30 38 25 $310 $190 $30 50 "Based on direct labor hours: 4 direct labor hours (OLHS) per unit of Flash and 2 DLHs per unit of Clash The DVD game craze is at its height so that either Flash or Clash alone can be sold to keep the plant operating at full capacity However, labor capacity in the plant is insufficient to meet the combined demand for both games Flash and Clash are processed