Question
MBA Fellows Company makes three products in a single facility. Data concerning these products follow: Selling price per unit Direct materials Direct labor Variable manufacturing
MBA Fellows 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 Products A B C $67.90 $57.70 $43.90 $12.10 $10.30 $8.60 $14.10 $8.00 $6.80 $2.60 $2.20 $1.80 $2.50 $2.20 $2.50 2.70 3.30 4.70 1,000 3,000 3,000 The mixing machines are potentially the constraint in the production facility. A total of 22,800 minutes are available per month on these machines. How much of each product should be produced to maximize net operating income? Show your calculations.
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