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

Product

A B C

Direct Materials $11.50 $15.80 $10.75

Direct Labor 15.50 12.60 9.25

Variable Manufacturing Overhead 2.40 2.25 1.80

Fixed Manufacturing Overhead 11.60 7.25 6.50

Unit product cost $41.00 $37.90 $28.30

Additional information about the products:

Product

A B C

Mixing minutes per unit 1.50 0.50 1.00

Selling price per unit 72.20 46.80 50.20

Variable selling cost per unit 2.10 1.40 1.90

Monthly demand in units 3,300 1,800 2,700

The mixing machines are potentially the constraint in the production facility. A total of 7,750 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 three products?

b. How much of each product should be produced to maximize net operating income?

c. Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity?