Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hutchison Inc. makes three products. Information related to these products are as follows: N Selling price per unit $ Direct materials per unit $ Direct

image text in transcribed
Hutchison Inc. makes three products. Information related to these products are as follows: N Selling price per unit $ Direct materials per unit $ Direct labour per unit $ Variable manufacturing overhear $ Variable selling cost per unit $ Mixing minutes per unit Monthly demand in units Products Y 67.90$ 57.70 $ 12.10 $ 10.30 $ 14.10 $ 8.00 $ 2.60 $ 2.20 $ 2.50 $ 2.20 $ 2.7 3.3 1,000 3,000 43.90 8.60 6.80 1.80 2.50 4.7 3,000 The mixing machines are potentially the constraint in the production facility. A total of 25,800 minutes are available per month on these machines. Direct materials and direct labour are Required: a. How many minutes of mixing machine time is required to meet demand for all three products? (2 marks) b. How much of each product should be produced to maximize operating profits? (6 marks) c. Up to how much should Hutchison be willing to pay for one additional hour of mixing machine time if they made the best use of the existing mixing machine capacity? (2

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

Ecology, Sustainable Development And Accounting

Authors: Seleshi Sisaye

1st Edition

0415816351, 9780415816359

More Books

Students also viewed these Accounting questions