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can someone please help me to solve question C? with steps 09 Holzmeyer Company makes three products in a single facility. Data concerning these products
can someone please help me to solve question C? with steps
09 Holzmeyer Company makes three products in a single facility. Data concerning these products follow: Selling price per unit Direct materials Direct labor Variable manufacturing overhead .... Variable selling cost per unit.. Mixing minutes per unit Monthly demand in units. Product Product B Product C $64.50 $64.80 $63.30 $20.90 $14.50 $18.30 $30.80 $33.40 $26.00 $1.60 $1.90 $2.10 $1.00 $3.40 $1.50 3.50 3.10 3.50 4,000 2,000 4,000 The mixing machines are potentially the constraint in the production facility. A total of 32,400 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 four products? b. How much of each product should be produced to maximize net operating income? (Round off to the nearest whole unit.) C- Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity? (Round off to the nearest whole cent.)Step by Step Solution
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