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Six (6 Marks) Holvey Company makes three products in a single facility. Data concerning these products follow: Products Direct materials Selling price per unit A
Six (6 Marks) Holvey Company makes three products in a single facility. Data concerning these products follow: Products Direct materials Selling price per unit A B C $70 $92.4 $85.9 Direct labor $34 $50.5 $56.9 Variable selling cost per unit Variable manufacturing overhead $21.4 $24 $14.8 $1.2 $0.6 $0.5 $1.8 $2.3 $2.1 Mixing minutes per unit 1.2 0.8 0.4 Monthly demand in units. 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. Required: 1. How many minutes of mixing machine time would be required to satisfy demand for all three products? 2. How much of each product should be produced to maximize net operating income
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