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Holton Company makes three products in a single facility. Data concerning these products follow: Selling price per unit Direct materials Direct labor Variable manufacturing overhead
Holton Company makes three products in a single facility. Data concerning these products follow: Selling price per unit Direct materials Direct labor Variable manufacturing overhead Variable selling cost per unit Mixing minutes per unit Monthly demand in units Product A B $96.20 $78.00 $86.40 $41.90 $43.50 $51.90 $30.20 $13.90 $12.10 $ 5.80 $ 4.70 $ 5.70 $ 6.50 $ 3.40 $ 3.50 11.50 1.00 1.00 3,000 1,000 2,000 The mixing 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. 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? Complete this question by entering your answers in the tabs below. Required A Required B How many minutes of mixing machine time would be required to satisfy demand for all three products? Total minutes required
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