Irminger Company makes three products in a single facility. Data concerning these products are below on...

 

Transcribed Image Text:

Irminger Company makes three products in a single facility. Data concerning these products are below on a per unit basis. All three products require time on the same production machine. The machine can only operate for 7,000 minutes per month. EA Product Selling Price Direct Materials Direct Labor Variable manufacturing overhead Variable selling cost Machine time required (in minutes) Monthly demand (in units) B $94.50 $88.40 $ 27.50 $40.20 $28.00 $19.50 $ 1.20 $ 0.60 $ 1.80 $ 2.30 0.8 1.25 $2,500 $2,800 EC $78.50 $21.90 $34.80 $ 1.10 $ 2.10 0.6 4,000 a) How many minutes of machine time are required for the company to fulfill all demand for all of the products? b) Given the time constraint, how many units of each product can the company make? c) Given the time constraint, what is the maximum additional amount the company would pay in order to gain the capacity to fulfill the demand for all of the products? Irminger Company makes three products in a single facility. Data concerning these products are below on a per unit basis. All three products require time on the same production machine. The machine can only operate for 7,000 minutes per month. EA Product Selling Price Direct Materials Direct Labor Variable manufacturing overhead Variable selling cost Machine time required (in minutes) Monthly demand (in units) B $94.50 $88.40 $ 27.50 $40.20 $28.00 $19.50 $ 1.20 $ 0.60 $ 1.80 $ 2.30 0.8 1.25 $2,500 $2,800 EC $78.50 $21.90 $34.80 $ 1.10 $ 2.10 0.6 4,000 a) How many minutes of machine time are required for the company to fulfill all demand for all of the products? b) Given the time constraint, how many units of each product can the company make? c) Given the time constraint, what is the maximum additional amount the company would pay in order to gain the capacity to fulfill the demand for all of the products?

Answer rating: 100% (QA)

a Total Machine Time Required Product A 125 minutes per unit 2500 units 3125 minutes Product B 08 mi... View the full answer