1/10 answered Time Remaining: 184m 57s Hide Hand-In Direct materials Product A Product B Product C l Exam $10.90 Direct labour $15.80 $8.00 12.50 12.60 Variable manufacturing overhead 9.90 2.40 1.20 Fixed manufacturing overhead 1.40 O 11.60 7.20 Unit product cost 7.80 $37.40 O $36.80 Selling price per unit $27.10 $55.80 $54.60 $43.10 O Variable selling cost per unit $2.10 $1.40 $1.90 Machine mixing minutes per unit 2 min. 1 min. O 0.5 min. Monthly demand in units 2,000 1,000 3,000 The mixing machines are the potential constraint in the production facility. The machines have a total capacity of 5,900 minutes available per month. The production of the above three products requires a component called SAR. The estimated requirement is 4,000 units per year. The unit production costs of SAR are as follows: Direct materials $35 Direct labour 10 Variable manufacturing overhead 8 Fixed manufacturing overhead 20 Unit product cost $73 An outside supplier has offered to sell all the 4,000 units of SAR required by the company. If the management decides to discontinue making SAR, 40% of the above fixed manufacturing overhead costs could be avoided. Q5-a (a) Based on limited machine mixing time (5,900 minutes) available per month, determine the optimal production mix of the (13 marks) three products that will maximise operating profits. Show all steps and calculations