San Diego State University Operations And Supply Chain Management Assignment Help - Units

Question - Glunn Company makes three products in a single facility. These products have the following unit
product costs:
Product A B C Direct materials $ 12.80 $ 9.30 $ 4.70 Direct labor 14.10 14.90 10.00 Variable
manufacturing overhead 1.20 0.90 0.50 Fixed manufacturing overhead 18.50 17.20 23.70 Unit
product cost $ 46.60 $ 42.30 $ 38.90
Additional data concerning these products are listed below.
Product A B C Mixing minutes per unit 3.70 3.40 3.90 Selling price per unit $ 59.20 $ 60.10 $ 55.30
Variable selling cost per unit $ 2.90 $ 2.70 $ 3.70 Monthly demand in units 2,000 4,000 2,000
The mixing machines are potentially the constraint in the production facility. A total of 24,200 minutes
are available per month on these machines. Direct l ...Read More abor is a variable cost in this company.
Required:
a. How many minutes of mixing machine time would be required to satisfy demand for all three
products?
Product A B C Total minutes required
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 nearest whole unit.)
Product A B C Optimal production
c. Up to how much should the company be willing to pay for one additional minute of mixing machine
time if the company has made the best use of the existing mixing machine capacity? (Round your
answer to 2 decimal places.)
Company willing to pay $ ...Read Less

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