Company A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product uses only one type of raw materials that costs € 6 per kilogram. The company has the capacity to...

Company A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product uses only one type of raw materials that costs € 6 per kilogram. The company has the capacity to annually produce 100,000 units of each product. The company considers its traceable fixed mahufacturing overhead to be avoidable and its common fixed expenses are unavoidable and have been allocated to products based on sales in euros. The Company's average cost per unit for each product at the annual level of activity is provided in the table.

(Answer each question independently unless instructed otherwise)

Assume that the Company's customers would buy a maximum of 80,000 units of product A and 60,000 units of product B. Also assume that the raw material available for production is limited to 160,000 kilograms. Evaluate how many units of product B should Company produce to maximize its profits.