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Krazo Industries manufactures and sells three products. Both labour and machine time are applied to the products as they pass through the department For
Krazo Industries manufactures and sells three products. Both labour and machine time are applied to the products as they pass through the department For the next six months, the following monthly capacity will be available in the department: Available time in machine hours The felated data for each product is as follows: 6,000 MH M07 T28 B19 Machine hours per unit 5.0 2.0 3.0 Demand in units 500 400 1,000 2 Contribution margin per unit $174 $821 $180 3 Fixed overhead per unit $15 $10 $32 4 3 Required: 61. Can the monthly demand for all three products be satisfied? Why or why not? Show supporting calculations. (2 marks) 19 20 21 22 Total machine hours required 23 24 25 26 M07 T28 819 Based on your conclusion from Part 1, in what order should the demand for the three products be filled and how many units of each 2. product will be produced? (6 marks)
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