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Please show all work, will give positive feedback for the answer! Super-Good Company makes three products in a single facility. These products have the following
Please show all work, will give positive feedback for the answer!
Super-Good Company makes three products in a single facility. These products have the following unit product costs: Products B Direct materials $10.90 $15.80 $8.00 Direct labour 12.50 12.60 19.90 Variable manufacturing overhead 2.40 1.20 11.40 Fixed manufacturing overhead 11.60 17.20 17.80 Unit product cost $37.40 $36.80 $27.10 Additional data concerning these products are listed below. Products B Mixing minutes per unit 12.00 1.00 10.50 Selling price per unit $55.80 $54.60 $43.10 Variable selling cost per unit $2.10 $1.40 $1.90 Monthly demand in units 2,000 1,000 3,000 The mixing machines are potentially a constraint in the production facility. A total of 5,900 minutes are available per month on these machines. Direct labour is a variable cost in this company. Required: a) How many minutes of mixing machine time would be required to satisfy demand for all four products? b) How much of each product should be produced, rounded to the nearest whole unit, to maximize operating income Products A | Selling price per unit Total variable cost per unit Contribution margin per minute Optimal production
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