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Ener Company makes two products in a single facility. Data concerning these products follow: Product A Product B Selling price per unit $64.70 $57.70 Direct
Ener Company makes two products in a single facility. Data concerning these products follow: Product A Product B Selling price per unit $64.70 $57.70 Direct materials per unit $12.10 $10.30) $14.10 $8.00 $2.60 $2.20 Direct labour per unit Variable manufacturing overhead per unit Variable selling cost per unit $2.50 $2.20 Mixing minutes per unit 2.70 3.30 Monthly demand in units 1,000 3,000 The mixing machines are potentially the constraint in the production facility. A total of 10,950 minutes is 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 both products? b) How many of each product should be produced to maximize net operating income? (Round off to the nearest whole unit)
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