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Can you give me the solution of b and c Need to show the work Parrot Company makes three products in its only facility. These
Can you give me the solution of b and c
Need to show the work
Parrot Company makes three products in its only facility. These products have the following unit product costs: Products L M N $10.90 $15.801 $8.00 12.60 9.90 2.40 1. 20 1. 400 7.20 7.80 $37.40 $36.80 $27. 10 Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Unit product cost 12.50 11. 60 Additional data concerning these products are listed below. Products M N 2.00 Mixing minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units 1.00 0.50 $56.30 $53.90 $14. 25 $2.15 $1. 60 $1.95 2,000 1,000 3,000 The mixing machines are potentially a constraint in the facility. A total of 5,600 minutes are available per month on these machines. Direct labour 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, rounded to the nearest whole unit, to maximize operating income c) Calculate the maximum profit under your optimal production planStep by Step Solution
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