While both racquets sell for $200 the contribution margin is $60 for Flexo and $50 for Velocity. Flexo requires
4 ounces of fiberglass while Velocity requires 2 ounces of titanium. The two racquets are produced on the same production line that has a maximum capacity of
3500 labor hours and a Velocity takes twice as many labor hours as the Flexo to produce. Direct labor costs Prince Co. $10/hour and each Flexo is charged
direct labor of $20. Prince Co. can only acquire 5000 ounces of fiberglass and 1000 ounces of titanium but can sell all the racquets it produces.