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Carla Vista Innovations, Inc. produces exercise and fitness gear. Two of its newer...

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Accounting

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Carla Vista Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a finishing process that can only be completed on machines that were recently purchased for this purpose. The machines have a maximum capacity of 10 . 500 machine hours, and no other products that the company makes use these machines. Sarah Jacob, the company's operations manager, is preparing the production schedule for the coming month and can't seem to find enough machine time to produce enough units to meet the customer demand that the marketing department has included in the sales budget. Michael Stoner, the company's controller, has gathered the following information about the two products: Sarah has talked with the marketing department about the situation and suggested that the company raise the sales price on the weight bench to $73 to reduce customer demand. The marketing department believes that at the higher price, demand for the weight bench will drop to 5,720 units. How should Sarah allocate the 10,500 machine hours based on this new information

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