PROBLEMS C: RELEVANT COSTS COMPANY | 25 points Holvey Company makes three products in a single facility. Data concerning these products follow Products A. $70.00 $92.40 $85.90 $34.00 $50.50 $56.90 $21.40 $24.00$14.80 $1.20 $0.60 $0.50 $1.80 $2.30 $2.10 Selling price per unit Direct materials Direct laber Variable selling cost per unit Mixing minutes per unit Monthly demand in units 1.20 0.800.40 2,000 4,000 2,000 The mixing machines are potentially the constraint in the production facility. A total of 6,300 minutes are available per month on these machines. Direct materials and direct labor are variable costs in this company Required: a. How many minutes of mixing machine time would be required to satisfy demand for all three products? b. What is the contribution margin per constrained resource for each of the three products? e. Based on your analysis in (b), how many units of each product should be produced to maximize net operating income? (Round off to the nearest whole unit.) d. Up to how much should the company be willing to pay for one additional minute of mixing machine time if the company has made the best use of the existing mixing machine capacity? (Round off to the nearest whole cent.) Clearly identify answers and show supporting computations. READ EACH QUESTION CAREFULLY Page 6 of 14