Glover Company makes three products in a single facility. These products have the following unit product costs: The mixing machines are potentially the constraint in the production facility. A total of 7,950 minutes are available per month on these machines. Direct labor is a variable cost inthis company.

REQUIRED

a. How many minutes of mixing machine time would be required to satisfy demand for all three products (if there were no production constraints)? Show your computation.

b. Based on the existing production constraints, how much of each product should be produced to maximize net operating income? Explain your answer and show your computations.

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

Additional data concerning these products are listed below. Solution Shell: a. Demand on the mixing machine: Total time required for all products: b. Optimal production plan: c. The company should be willing to pay up to the FILL IN THE BLANK (a financial metric) per hour for the marginal job, which is ????. Additional data concerning these products are listed below. Solution Shell: a. Demand on the mixing machine: Total time required for all products: b. Optimal production plan: c. The company should be willing to pay up to the FILL IN THE BLANK (a financial metric) per hour for the marginal job, which is