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Required information Problem 4-77 and 4-78 (Algo) (LO 4-4, 5) [The following information applies to the questions displayed below.] Oxley, Incorporated manufactures three products (Alpha,
Required information Problem 4-77 and 4-78 (Algo) (LO 4-4, 5) [The following information applies to the questions displayed below.] Oxley, Incorporated manufactures three products (Alpha, Beta, and Gamma) utilizing, in one of the processes, a single machine for all products. Data on the individual products follow: Aplha Beta Gamma Price per unit $ 532 $ 1, 442 $ 717 Variable cost per unit $ 208 $ 866 $ 447 Machine minutes per unit 12 48 30 Maximum demand per period (units) 38, 000 4, 200 16, 400 The single machine used for all three products has a maximum capacity of 714,000 minutes per period. Problem 4-77 (Algo) Theory of Constraints (LO 4-4, 5) Required: a. How many units of each product should be produced each period? b. Oxley has received a proposal from one of its vendors that the vendor could increase the capacity on the machine. What is the maximum Oxley would be willing to pay the vendor for an increase of 4,320 machine minutes? c. Suppose the maximum capacity on the machine was 456,000 minutes (instead of 714,000 minutes). What is the maximum Oxley would be willing to pay for an increase of 4,320 machine minutes? d. At what capacity (in machine hours) would the machine no longer be a bottleneck
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