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Based in the New England area, Glouster Fish Company has a single facility that makes three products in high demand from all the local fishermen.
Based in the New England area, Glouster Fish Company has a single facility that makes three products in high demand from all the local fishermen. These three products have unit product costs which are listed below: Bote Gamma Alpha 533.70 $50.20 Direct malerials $56.60 Madishle manfacturing overhead 2.10 150 Fixed manufacturing overhead Unit product cost 12.60 8.20 B.80 S69.50 $83.60 $80.1D Additional data concerning these products are listed below. Product Gamma 0 50 Mixing minutes per unit Selling price per unit s67.00 $89.40 $82.90 nit Manibly demand in unite 2 900 200 2200 The mixing machines are potentially the constraint in the production facility. A total of 6,210 minutes are available per month on these machines. Direct labor is a variable cost in this company. Required: How many minutes of mixing machine time would be required to satisfy demand for all three products? Tolal minules required How many units feach product should be produced to maximize net operating income? (Round intermediate calculations to two decimal places. Round off to the nearest whole unit.) Product Units A E decimal places.) to how much should the company be willing pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity? (Round vour answer to Contribution margin
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