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Glouchester Clam Company makes three kinds of clam chowder in a single facility (New England, Manhattan and Spicy). The unit product costs for these chowders

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Glouchester Clam Company makes three kinds of clam chowder in a single facility (New England, Manhattan and Spicy). The unit product costs for these chowders are as follows: Direct materials Direct labor Variable manufacturing overhead Foed manufacturing overhead Unit product cost New England Chowder 534.20 21.60 1.40 11.30 $68.50 Product Manhattan Spicy Chowder Chowder 550.70 $57.10 24.20 15.00 80 70 6.90 7.50 58260 580 30 Additional data concerning these products are listed below. Misding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units Product New Manhattan England Spicy Chowder Chowder Chowder 1.40 1.00 0.20 572.00 $94.40 587.90 52.00 52.50 S230 2.200 4200 2.200 The mixing machines that mix up all the ingredients are potentially the constraint in the production facility. A total of 7.620 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 the demand for all three chowder products? Total minutes required b. How many units of each chowder type should be produced to maximize net operating income? (Round intermediate calculations to two decimal places. Round off to the nearest whole unit.) Product Units B C c. Up to how much should the company be willing to pay for one additional hour of mbing machine time the company has existing moding machine capacity? (Round your answer to 2 decimal places.) best use of the Contribution margin

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