Glocker Company makes three products in a single facility. These products have t
ID: 2598939 • Letter: G
Question
Glocker Company makes three products in a single facility. These products have the following unit product costs:
The mixing machines are potentially the constraint in the production facility. A total of 7,430 minutes are available per month on these machines. Direct labor is a variable cost in this company.
How much of each product should be produced to maximize net operating income? (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number.)
The mixing machines are potentially the constraint in the production facility. A total of 7,430 minutes are available per month on these machines. Direct labor is a variable cost in this company.
b.How much of each product should be produced to maximize net operating income? (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole number.)
Product $ 33.50 50.00 56.40 $ 20.90 23.50 $ 14.30 Direct materials Direct labor Variable manufacturing overhead $ 1.90 $ 1.30 $ 0.20 Fixed manufacturing overhead 12.80 8.40 9.00 Unit product cost $69.10$83.20 $79.90 Additional data concerning these products are listed below. Mixing minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units 0.20 $ 65.00$ 87.40 $ 80.90 $ 1.30$ 1.80 $ 1.60 2,000 1.90 0.50 2,700 4,000
Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up Statementshowing Computations Paticulars Product A Product B Product C Selling price per unit 65.00 87.40 80.90 Variable costs per unit: Direct Materials 33.50 50.00 56.40 Direct Labour 20.90 23.50 14.30 Variable Manu O/H per unit 1.90 1.30 0.20 Variable selling cost per unit 1.30 1.80 1.60 Total Variable costs 57.60 76.60 72.50 Contribution per unit 7.40 10.80 8.40 Mixing minutes per unit 1.90 0.50 0.20 Contribution per mixing minutes 3.89 21.60 42.00 Ranking 3.00 2.00 1.00 Total minutes available 7,430.00 Minutes for C = 2000*.20 400.00 Remaining for A and B 7,030.00 Minutes for B = 4000*.50 2,000.00 Remaining for A 5,030.00 Units of A = 5030/1.90 2,647.37
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