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3. Glunn Company makes three products in a single facility. These products have the following unit product costs: Additional data concerning these products are
3. Glunn Company makes three products in a single facility. These products have the following unit product costs: Additional data concerning these products are listed below. Mixing minutes per unit Selling price per unit Variable cost per unit Monthly demand in units A Products B C 4 8 50 60 30 2000 28 3 55 22 4,000 2,000 The mixing machines are potentially the constraint in the production facility. A total of 24,200 minutes are available per month on these machines. Direct labor is a variable cost in this company. Required: a. How many minutes of mixing machine time would be required to satisfy demand for all three products? b. How much of each product should be produced to maximize net operating income? S.F
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