Romina Ltd manufactures three different product lines, Model A, Model B, and model C Considerable market demand exists for all models The following per unit data apply Model A Model B Model C Selling price $844 $871 $869 Direct materials $66 $63 $79 Direct labour ($80 per hour) 1 2 hours 1 7 hours 1 3 hours Variable support costs $146 $187 $182 Machine hours per unit 2 hours 0 8 hours 2 5 hours Calculate the highest operating income (rounded using two decimals) the company could achieve using the short run profit maximising strategy if the maximum machine hours available are 4,043 per month Total fixed costs per month are $950,000 corect answer is 1,501,068 75 0 1 how did they get this

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Question: Romina Ltd manufactures three different product lines, Model A, Model B, and model C. Considerable market demand exists for all models. The following per unit

Romina Ltd manufactures three different product lines, Model A, Model B, and model C. Considerable market demand exists for all models. The following per unit data apply:

	Model A	Model B	Model C
Selling price	$844	$871	$869
Direct materials	$66	$63	$79
Direct labour ($80 per hour)	1.2 hours	1.7 hours	1.3 hours
Variable support costs	$146	$187	$182
Machine-hours per unit	2 hours	0.8 hours	2.5 hours

Calculate the highest operating income (rounded using two decimals) the company could achieve using the short-run profit maximising strategy if the maximum machine-hours available are 4,043 per month. Total fixed costs per month are $950,000.

corect answer is 1,501,068.75 0.1. how did they get this?

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