Lu Company makes three products in a single facility. Data concerning these products follow: Product A Product B Product C $70 $90 $80 $34 $50 $57 Selling price per unit Direct materials per unit Direct labor per unit Variable manufacturing overhead per unit $21 $24 $18 $1.20 $2.30 $0.50 Variable selling cost per unit $1.80 $0.70 $2.50 2.4 minutes 0.1 minute Mixing minutes per unit Monthly demand in units 1.3 minutes 5,000 units 2,000 units 10,000 units The mixing machines are potentially the constraint in the production facility. A total of 9,900 minutes are available per month on these machines. Direct labor is a variable cost in this company. Required: a. Is the capacity at Lu constrained by its mixing machines? Explain and provide computations (2 points) b. How much of each product should be produced to maximize net operating income? (6 points) c. Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity? (3 points)