A company produces the following three products in a single manufacturing plant.

	Product
	1		2		3
Direct materials	$	34.30	$	50.80	$	57.20
Direct labor		21.70		24.30		15.10
Variable manufacturing overhead		1.50		0.90		0.80
Fixed manufacturing overhead		11.40		7.00		7.60

Additional data concerning these products are listed below.

	Product
	1		2		3
Mixing minutes per unit		1.50		1.10		0.20
Selling price per unit	$	73.00	$	95.40	$	88.90
Variable selling cost per unit	$	2.10	$	2.60	$	2.40
Monthly demand in units		2,300		4,300		2,300

The mixing machines are potentially the constraint in the production facility. A total of 8,540 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?

c. If the company has made the best use of the existing mixing machine capacity, what is the maximum amount they should be willing to pay for one additional hour of mixing machine time?