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Holton Company makes three products in a single faclity. Data concerning these products follow: Product Selling price per unit Direct materials Direct labor Variable manufacturing
Holton Company makes three products in a single faclity. Data concerning these products follow: Product Selling price per unit Direct materials Direct labor Variable manufacturing overhead Variable selling cost per unit Mixing minutes per unit Monthly demand in nits $94.50 $79.60 $112.60 $41.20 $44.40 67.70 $29.70$14.20 16.70 $5.70 4.80 7.80 $ 7.20 3.40 4.80 12.80 2.50 2.50 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 ls 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? 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? Complete this question by entering your answers in the tabs below Required A Required B Required C How many minutes of mixing machine time would be required to satisfy demand for all three products? Total minutes required Required ARequired B Required C How much of each product should be produced to maximize net operating income? (Round final answers to the nearest whole unit.) Product A Product B Product C Optimal production Required A Required BRequired 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? (Round your intermediate calculations and final answer to 2 decimal places.) Mixing machine capacity Required B Required C
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