Glocker Company makes three products in a single facility. These products have the following unit product costs: $ 55.70 $ 13.60 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Product B $ 49.30 $ 22.80 $ 0.60 5.10 A $ 32.80 $ 20.20 $ 1.20 2.50 $ 0.90 1.10 Unit product cost $56.70 $77.80 $71.30 Additional data concerning these products are listed below. Mixing minutes per unit 1.20 1.20 0.20 Selling price per unit $ 58.00 $ 80.40 $ 73.90 Variable selling cost per unit $ .60 $ 1.10 $ 2.30 Monthly demand in units 2,000 3,300 1,300 The mixing machines are potentially the constraint in the production facility. A total of 6,520 minutes are available per month on these machines. Direct labor 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? Total minutes required b. How much of each product should be produced to maximize net operating Income? (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number.) A Optimal production The mixing machines are potentially the constraint in the production facility. A total of 6,520 minutes are available per month on these machines. Direct labor 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? Total minutes required b. ich of each product should be produced to maximize net operating income? (Round your Intussediate calculations to 2 decimal places and final answers to the nearest whole number.) B Optimal production c. Up to how much should the company be willing to pay for one additional minute of mixing machine time if the company has made the best use of the existing mixing machine capacity? (Round your answer to 2 decimal places.) Maximum amount The management of Fannin Corporation is considering dropping product H585. Data from the company's accounting system appear below: Sa $930,000 Variable expenses $389,000 Fixed manufacturing expenses $371,000 Fixed selling and administrative expenses $251,000 In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $235,000 of the fixed manufacturing expenses and $196,000 of the fixed selling and administrative expenses are avoidable if product H58S is discontinued. What would be the effect on the company's overall net operating income if product H585 were dropped? O Overall net operating income would decrease by $110,000 O Overall net operating income would increase by $81,000. O Overall net operating income would increase by $110,000 O Overall net operating income would decrease by $81,000
