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Glocker Company makes three products in a single facility. These products have the following unit product costs: Products A B C Direct materials $10.90 $15.80

Glocker Company makes three products in a single facility. These products have the following unit product costs:

Products

A

B

C

Direct materials

$10.90

$15.80

$8.00

Direct labour

12.50

12.60

9.90

Variable manufacturing overhead

2.40

1.20

1.40

Fixed manufacturing overhead

11.60

7.20

7.80

Unit product cost

$37.40

$36.80

$27.10

Additional data concerning these products are listed below.

Products

A

B

C

Mixing minutes per unit

2.00

1.00

0.50

Selling price per unit

$55.80

$54.60

$43.10

Variable selling cost per unit

$2.10

$1.40

$1.90

Monthly demand in units

2,000

1,000

3,000

The mixing machines are potentially a constraint in the production facility. A total of 5,900 minutes are available per month on these machines. Required: a) How many minutes of mixing machine time would be required to satisfy demand for all four products?( 3 Marks) b) How much of each product should be produced, rounded to the nearest whole unit, to maximize operating income(12 Marks)

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