Sun & Surf produces Bomber Jackets and Sweat suits using the same facilities.

	Bomber Jacket	Sweat suit
Selling Price	$120	$86
Variable Costs	$ 72	$45

Bomber Jackets take 1 Direct Labor Hour and 1 Machine Hour. Sweat suits take 2 Direct Labor Hours and 0.5 Machine Hours.

Direct Labor Hours available: 500 hours

Machine Hours available: 200 hours

Maximum demand:         150 Bomber Jackets        250 Sweat suits

Current Production:

A cost accounting student from Medicine Hat College recommended the following. Since Sun & Surf makes more $CM from Bomber Jackets they should produce as many of them as they can sell [150 units] and use the remaining 50 machine hours to produce Sweat suits.

Consequently, Sun & Surf uses 150 Machine Hours to make 150 Bomber Jackets. They use the remaining 50 Machine Hours to make 100 Sweat suits. So, current production is 150 Bomber Jackets and 100 Sweat suits.

Proposed Production:

As a cost accounting student from the highly regarded Freeman Institute of Cost Accounting, you state that you think you can improve on the current production schedule. Graph your solution to determine the feasible area and identify corner points.