Maxima Manufacturing Pty Ltd is a medium-sized manufacturing company with its administration office based in Sydney, NSW. It has been operating since 1990 and manufactures generators. The strategy of Maxima is to provide envirironmentally safe generators. It has two manufacturing plants that are based in Bathurst and Newcastle, NSW. Bathurst commenced manufacturing in 1990, while Newcastle commenced operations in 2005. The following information are available for the two manufacturing plants.

The Bathurst plant's production rate is 320 generators per day, while Newcastle is 400. The normal and maximum annual capacity usage at both plants is 240 days and 300 days. Other details include: Newcastle Plant

Bathurst Plant

Selling Price

$450.00

$450.00

Manufacturing variable cost per unit

$216.00

$264.00

Manufacturing fixed cost per unit

90.00

45.00

Marketing variable cost per unit

42.00

42.00

Marketing fixed cost per unit

57.00

43.50

Total cost per unit

405.00

394.50

Operating income per unit

$45.00

$55.5