Question: Holvey Company makes three products in a single facility. Data concerning these products follow Product A B $59 20 S 60.10 $ 55,30 Sales Price
Holvey Company makes three products in a single facility. Data concerning these products follow Product A B $59 20 S 60.10 $ 55,30 Sales Price Costs Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Selling Total Cost $ 1280 $ 9.30 $ 4.70 $9.10 $ 14.90 $ 10.00 $ 120 $0.90 $0.50 $11.50 $ 17.20 $23.70 $ 2.90 $ 2.70 $ 3.70 $ 37 50 $45.00 $ 42.60 Mixing minutes per unit 8.1 7.5 8.7 Monthly Demand (total units) 2,000 4,000 2,000 The mixing machines are potentially the constraint in the production facility A total of 60,000 minutes are available per month on these machines Required What quantity of each product should be produced to maximize net operating income? (Round off to the nearest whole unit)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
