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Multiple Company makes three products in a single facility. Data concerning these products follow: Product Selling price per unit Direct materials Direct labor A
Multiple Company makes three products in a single facility. Data concerning these products follow: Product Selling price per unit Direct materials Direct labor A P75.90 P29.70 P21.20 P4.90 P1.30 B P71.10 P30.20 P19.80 15.60 P3.90 1.70 1,000 C P73.40 P33.40 P19.60 P7.60 P1.80 1.30 Variable manufacturing overhead Variable selling cost per unit Mixing minutes per unit 2.10 Monthly demand in units 4,000 2,000 The mixing machines are potentially the constraint in the production facility. A total of 12,500 minutes are available per month on these machines. Assume that fixed costs total to P35,000, compute for the operating income of the company if it is able to maximize its resources.
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