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Peach Company makes 3 products in a single facility. The products have the following unit costs: Products A B C Direct Materials 13.40 12.30 12.30
Peach Company makes 3 products in a single facility. The products have the following unit costs:
A | B | C | |
Direct Materials | 13.40 | 12.30 | 12.30 |
Direct Labor | 60 | 9.20 | 7.70 |
Variable MOH | 30 | 2.10 | 3.80 |
Fixed MOH | 6.80 | 11.50 | 6.50 |
The following additional information is known about each product:
A | B | C | |
Packaging Minutes per unit | 3.40 | 3.90 | 2.20 |
Selling Price per unit | 68.70 | 68.40 | 66.70 |
Variable selling costs per unit | 2.80 | 1.90 | 2.70 |
Monthly demand in units | 900 | 1100 | 900 |
The packaging machines are a potential constraint in the production facility. A total of 12,000 minutes are available each month on the machines.
How many minutes of packaging time would be required to satisfy demand for all three products?
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