Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Guadalupe Inc. makes three products in a single facility. Data concerning these products follow: Product IND DET SWS Selling price per unit $ 1 5

Guadalupe Inc. makes three products in a single facility. Data concerning these products follow:
Product
IND DET SWS
Selling price per unit $ 150.80 $ 76.70 $ 169.30
Direct materials $ 65.60 $ 42.70 $ 101.80
Direct labor $ 47.20 $ 13.60 $ 30.10
Variable manufacturing overhead $ 9.00 $ 4.50 $ 14.00
Variable selling cost per unit $ 24.00 $ 3.30 $ 8.60
Stirring minutes per unit 42.602.502.50
Monthly demand in units 3,0001,0002,000
The stirring machines are potentially the constraint in the production facility. A total of 14,000 minutes are available per month on these machines.
Direct labor is a variable cost in this company.
How many minutes of stirring machine time would be required to satisfy demand for all three products?
How much of each product should be produced to maximize net operating income?
IND:
DET:
SWS:
Response for the questions above should be formatted as a whole number with commas separating appropriate increments and parentheses indicating negative amounts, losses, or outflows as needed. For example: 1,000 would signify positive and (1,000) would signify negative. Please do not include any words in these responses.
Up to how much should the company be willing to pay for one additional hour of stirring machine time if the company has made the best use of the existing mixing machine capacity?
Include a dollar sign and round your answer to two decimal places.
Please note that you MUST format your response exactly as directed in order to receive credit. I will give partial credit for correct numbers with incorrect formatting.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Sixth International Congress On Accounting 1952

Authors: Various

1st Edition

0367512807, 9780367512804

Students also viewed these Accounting questions