Hewitt Co. has 4,000 machine hours available to produce either Product 22 or Product 44. The cost accounting department developed the following unit information for each product: Product 22 Product 44
Sales price $27 $50
Direct materials 6 8
Direct labor 3 2
Variable manufacturing overhead 4 5
Fixed manufacturing overhead 3 5
Machine time required 20 minutes 60 minutes

Required:
Management wants to know which product to produce in order to maximize the company’s income. Taking into consideration the constraints under which the company operates. Prepare a report.

Management wants to know which product to produce in order to maximize the company's income. Taking into consideration the constraints under which the company operates, prepare a report to show which product should be produced and sold.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answerindividual preferences are not revealed in the market for the good;