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Question 8 7 pts Holvey Company makes three products in a single facility. Data concerning these products follow: Product B Selling Price $ 74.50 $
Question 8 7 pts Holvey Company makes three products in a single facility. Data concerning these products follow: Product B Selling Price $ 74.50 $ 88.40 $ 78.50 Direct Materials $ 27.50 $ 50.50 $ 21.90 Direct Labor $ 28,00 $ 19.50 $ 34.80 Variable manufacturing $ 1.20 0.60 $ 1.10 overhead Variable selling cost $ 1.80 $ 2.30 $ 2.10 Machine time 1.25 0.5 required (Minutes) Monthly demand in 2,500 1,800 units 5,000 1.1 The mixing machines are potentially the constraint in the production facility. A total of 3,500 minutes are available per month on these machines. Direct labor is a variable cost in this company, Required: What quantity of each product should be produced to maximize net operating income? (Round off to the nearest whole unit.)
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