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Dustin Co. makes three products, A, B and C. They have a constrained resource - machine hours. There are only 17,633 machine hours available a
Dustin Co. makes three products, A, B and C. They have a constrained resource - machine hours. There are only 17,633 machine hours available a month. The three products have the following data: B C Selling Price per unit 6.00 16.00 11.00 Variable Cost per unit 2.00 4.00 6.00 Machine hours required 2 4 5 Demand for product in units 1,016 4,035 1,021 How much of product B should be produced? The Park Avenue Corporation currently makes a part required in its finished product. The company uses 2,111 units of this part annually. Park Avenue Corp has been approached by a vendor to provide this part for $13.11 each. The following cost information is provided Direct Materials per unit Direct Labor per unit Variable Factory Overhead per unit Fixed Factory Overhead per unit $5.88 $7.30 $2.50 $7.50 How much would Park Avenue Corporation save by having the vendor make the part, instead of making it themselves? Enter your answer rounded to the nearest whole number. Don't enter dollar signs or commas
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