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Glocker Company makes three products in a single facility. These products have the following unit product costs: begin{tabular}{|l|r|r|r|} hline & multicolumn{2}{|c|}{ Products } hline

image text in transcribed Glocker Company makes three products in a single facility. These products have the following unit product costs: \begin{tabular}{|l|r|r|r|} \hline & \multicolumn{2}{|c|}{ Products } \\ \hline & \multicolumn{1}{|c|}{ A } & \multicolumn{1}{|c|}{ B } & \multicolumn{1}{c|}{ C } \\ \hline Direct materials & $10.90 & $15.80 & $8.00 \\ \hline Direct labour & 12.5 & 12.6 & 9.9 \\ \hline Variable manufacturing overhead & 2.4 & 1.2 & 1.4 \\ \hline Fixed manufacturing overhead & 11.6 & 7.2 & 7.8 \\ \hline Unit product cost & $37.40 & $36.80 & $27.10 \\ \hline \end{tabular} Additional data concerning these products are listed below: \begin{tabular}{|l|r|r|r|} \hline & \multicolumn{2}{|c|}{ Products } \\ \hline & \multicolumn{1}{|c|}{ A } & \multicolumn{1}{|c|}{ B } & \multicolumn{1}{|c|}{ C } \\ \hline Mixing minutes per unit & 2 & 1 & 0.5 \\ \hline Selling price per unit & $55.80 & $54.60 & $43.10 \\ \hline Variable selling cost per unit & $2.10 & $1.40 & $1.90 \\ \hline Monthly demand in units & 2,000 & 1,000 & 3,000 \\ \hline \end{tabular} The mixing machines are potentially the constraint in the production facility. A total of 6,000 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 all three products? (3 Marks) b. How much of each product should be produced to maximize net operating income? (Round off to the nearest whole unit.) ( 11 marks)

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