Tavistone Co makes three models of garden pond pump: the Compact, the Standard and the Deluxe. All three are made on the same moulding machines, and for the year ending 31 December 2027 only 18,000 machine hours will be available. The budgeted selling price, variable costs, machine time and maximum demand for each pump are shown below.

Note 1: Labour is paid $16 per hour for the hours worked and is a variable cost. 12,000 labour hours are available in the year. Note 2: Tavistone Co has signed a contract to supply 500 Standard pumps to a garden centre chain in the year. These 500 pumps are included in the maximum demand for the Standard and must be made. Note 3: Fixed costs are $250,000 for the year and will not change with the production plan. Pumps are made only to meet demand, so there is no inventory, and part-finished pumps are not carried forward. Note 4: Tavistone Co aims to maximise its profit for the year.