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could anyone confirm these answers and tell me how they got them if they are correct, please & thank you Glocker Company makes three products
could anyone confirm these answers and tell me how they got them if they are correct, please & thank you
Glocker Company makes three products in a single facility. These products have the following unit product costs: $ 12.60 9.75 1.80 9.60 $ 33.75 El Product A Direct Materials $ 10.90 $ 15.80 5 Direct Labor 18.50 12.60 7 Variable Manufacturing Overhead 2 .40 1.20 8 Fixed Manufacturing Overhead 11.60 7.20 9 Unit product cost $ 43.40 $ 36.80 10 11 12 Additional information about the products: 13 Product 14 A B 15 Mixing minutes per unit 2.00 0.50 16 Selling price per unit 72.20 46.80 17 Variable selling cost per unit 2.10 1.40 18 Monthly demand in units 1,800 1,600 D C 1.00 44.40 1.90 2,800 19 21 The mixing machines are potentially the constraint in the production facility. 22 A total of 5,500 minutes are available per month on these machines. 23 Constraint Mixing minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units Product ABC 2.00 10.50 1.00 72.20 46.80 44.40 2.10 1.40 1.90 1,800 1,600 2,800 The mixing machines are potentially the constraint in the production facility A total of 5,500 minutes are available per month on these machines a. How many minutes of mixing machine time would be required to satisfy demand for all three products? 3 b. How much of each product should be producted to maximize net operating income? (Round to whole units) 7 c. Up to how much should the company be willing to pay for one additional hour of mixing machine time if the 8 company has made th best use of the existing mising machine capacity? (Round to whole cents) Mixing Minutes per unit Monthly Demand Minutes Required i.e. 7,200 minutes A B 20.5 1,800 3,600 1,600 800 2,800 2,800 b. Products should be produced in the order of contribution margin per mixing minute Selling Price per unit 72.2 46.8 Direct material 10.9 15.8 Direct labor 18.5 12.6 Variable manufacturing overhead 2.4 1.2 Variable selling cost 2.1 1.4 Contribution Margin per unit 38.3 15.8 Mixing Minutes per unit 2 0.5 CM per minute 19.15 31.6 44.4 12.6 9.75 1.8 1.9 18.35 18.35 Production Schedule Product A 3600 Units Minutes per unit Total Minutes 1800 2 1600 0.5 800 11001 1100 Total 5500 3. Maximum amount paid contriubution margin per minute 1-$18.35 per minute since additional time will be used to produce Step by Step Solution
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