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Constrained Resources (7 Marks) Barlow Company makes three products in their manufacturing facility. Data concerning these products is as follow: Products Y Z Selling
Constrained Resources (7 Marks) Barlow Company makes three products in their manufacturing facility. Data concerning these products is as follow: Products Y Z Selling price per unit $33.95 $28.85 $21.95 Direct materials 6.05 5.15 4.30 Direct labour 7.05 4.00 3.40 Variable manufacturing overhead 1.30 1.10 0.90 Variable selling cost per unit 1.25 1.10 1.25 Mixing minutes per unit 1.35 1.65 2.35 Monthly demand in units 2,000 6,000 6,000 Machine minutes are potentially the constraint in the production facility. A total of 26,000 minutes are available per month on these machines. Direct labour is a variable cost for Barlow Company. Required: How many machine minutes would be required to satisfy demand for all three products? How much of each product should be produced to maximize operating income? (Round to the nearest whole unit.)
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