Cranky company produces two types of gears: X and Y. The unit contribution margins are $25 and $10 respectively. They can sell all they can produce. Each gear must be notched by a special machine. The firm owns 8 machines that can provide 40,000 hours of machine time each year. Gear X requires 2 machine hours and Gear Y requires machine hour.
How many of each should be made (what is the optimal mix)?