Briggs Tools Makes 2 Products, Snips and Cutters

Briggs Tools makes 2 products, snips and cutters.Snips have a contribution margin per unit of $8.00 and cutters have a contribution margin per unit of $12.00.Briggs has annual fixed costs of $117,600.Briggs' historical sales data indicates that snips and cutters are sold in a 2 to 1 sale mix.Each snip takes 2 machine hours and each cutter takes 4 machine hours.Demand for both products is unlimited but the company must produce at least 1,000 units of each to stay competitive.Briggs is limited to 24,000 machine hours per month.How many units of each product should be produced each month?

A) 20,000 snips, 1,000 cutters
B) 10,000 snips, 4,000 cutters
C) 12,000 snips, 6,000 cutters
D) 10,000 snips, 1,000 cutters