Question:Dweeb Corp. makes three products in a single facility. These products have the following unit product costs:

Product AProduct BProduct C

Direct material$40.00$35.00$38.00

Direct labor21.0018.5017.50

Variable manufacturing overhead5.507.0011.00

Fixed manufacturing overhead35.0036.0031.00

Unit cost$101.50$96.50$97.50

Additional data concerning these products are listed below:

Product AProduct BProduct C

Mixing minutes per unit5.53.55.0

Selling price per unit$135.00$122.00128.00

Variable selling cost per unit$9.50$7.00$8.75

Monthly demand in units2,4004,9004,200

The mixing machines are potentially the constraint in the production facility.A total of 47,000 minutes are available per month on these machines.

Direct labor is a variable cost in this company.

1)How many minutes of mixing machine time would be required to satisfy demand for all three products?

2) What is the contribution margin per minute individually for Products A, B, and C?

3) Using only the available 47,000 minutes of machine time, how much of each product should be produced to maximize net operating income? (Rounddownto the nearest whole units.)

4)Is there unmet demand for product(s)? If so, how much and for which product(s)?

5)Assume there is unmet product demand. How much in total should Dweeb be willing to pay for additional machine time?