Question: Guadalupe Inc. makes three products in a single facility. Data concerning these products follow: Product IND DET SWS Selling price per unit $ 1 5

Guadalupe Inc. makes three products in a single facility. Data concerning these products follow:
Product
IND DET SWS
Selling price per unit $ 150.80 $ 76.70 $ 169.30
Direct materials $ 65.60 $ 42.70 $ 101.80
Direct labor $ 47.20 $ 13.60 $ 30.10
Variable manufacturing overhead $ 9.00 $ 4.50 $ 14.00
Variable selling cost per unit $ 24.00 $ 3.30 $ 8.60
Stirring minutes per unit 42.602.502.50
Monthly demand in units 3,0001,0002,000
The stirring machines are potentially the constraint in the production facility. A total of 14,000 minutes are available per month on these machines.
Direct labor is a variable cost in this company.
How many minutes of stirring machine time would be required to satisfy demand for all three products?
How much of each product should be produced to maximize net operating income?
IND:
DET:
SWS:

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