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Big Hawk Inc. produces three products and estimated cost data is noted below: Pixie Dixie Jumbo $80 Data per unit Selling Price $77 $73 Manufacturing
Big Hawk Inc. produces three products and estimated cost data is noted below: Pixie Dixie Jumbo $80 Data per unit Selling Price $77 $73 Manufacturing Costs Fixed Overhead Variable Expenses $4 $15 20 24 44. $5 32 54 Direct Materials Labor and Overhead 12 36 48 Total Variable Total Manufacturing Costs$48 $63 Variable Selling Expense Profit per Unit 59 4 2 $26 $6 $19 Demand for the company's products is very strong, with potentially more orders each month than the company can produce with the available raw materials. The products are all produced using the same equipment and facility and FX78 is the material used for each product. The material costs $4 per pound. Fixed overhead is allocated based on machine hours Assuming materials is the only constraint, how would you prioritize production of the products? Priority; First Show your supporting work Second Third If the firm only sold the Jumbo product, what is the most they would be willing to pay to a supplier for material? Per pound
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