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Cavendish CHEESE Company makes three products within their single facility . Data concerning these products follow . Products A B Selling price per unit $67.90
Cavendish CHEESE Company makes three products within their single facility . Data concerning these products follow ." Products A B Selling price per unit $67.90 $57.70 5:43.90 Direct materials* $ 12.10 510. 30 Direct labour $14. 10 $8.00 Variable manufacturing overhead 52.60 $2. 20 Variable Selling cost per unit $ 2.50 $2. 20 52.50) Mixing minutes per unit 2.70 3.30 4 . 70 Monthly demand in units* 1 , 000 3,000 3, 000 The mixing machines are potentially a constraint in the production facility . A total of 25, 800 minutes are* available per month on these machines . Direct labour is a variable cost in this company . Required :" 1) How many minutes of mixing machine time would be required to satisfy demand for all three* products ?" 2 ) How much of each product should be produced , rounded to the nearest whole unit , to maximize* operating income ?" 31 Up to how much should the company be willing to pay , rounded to the nearest whole cent , for one additional minute of mixing machine time if the company has made the best use of the Existing mixing machine capacity ?"
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