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7. Kaz Company makes two products in a single facility. These products have the following unit product co Products B Variable manufacturing costs ...... $28.50

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7. Kaz Company makes two products in a single facility. These products have the following unit product co Products B Variable manufacturing costs ...... $28.50 S24.80 Fixed manufacturiug overhead..... $18.50 $17.20 Unit product cost.... S47.00 S42.00 oubor Additional data concerning these products are listed below. Bagong Products B Mixing minutes per unit Selling price per unit...... Variable selling cost per unit... Monthly demand in units....... 5 S68.90 $2.90 2,000 S65.50 S2.70 4,000 l . limitol= 18000 The inixing machines are potentially the constraint in the production facility. A total of 18,000 minutes are available per month on these machines. Up to how much should the company be willing to pay for sixty minutes (one hour) of additional mixing machine time if the company has made the best use of the existing mixing machine capacity? (Round off to the nearest whole dollar.) CM nd

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