9.3

Guerrero Company makes three products in a single facility. These products have the following unit product costs: Additional data concerning these products are listed below. The mixing machines are potentially a constraint in the production facility. A total of 5,900 minutes $0 avallable per month on these machines. Direct labour is a variable cost in this company. Required: 1. How many minutes of mixing machine time would be required to satisfy demand for all four products? 2. How much of each product should be produced, rounded to the nearest whole unit, to maximize operating income 3. Up to how much should the company be willing to pay, rounded to the nearest whole cent, for one additional minute of mbing machine time if the company has made the best use of the existing mbing machine capacity