A and B are correct but i cannot get C correct, please help. Glocker Company mak

Question

A and B are correct but i cannot get C correct, please help.

Glocker Company makes three products in a single facility. These products have the following unit product costs Product Direct materials Direct labor Variable manufacturing $32.90 49.40 $ 55.80 $ 20.30 $ 22.90 13.70 $1.30 $ 0.70 $ 0.80 overhead Fixed manufacturing overhead 13.40 9.00 9.60 Unit product cost $67.90 $82.00 S79.90 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 1.30 1.10 0.30 $ 59.00 $ 81.40 74.90 $.70 $ 1.20 $ 2.20 2,100 3,400 1,400 The mixing machines are potentially the constraint in the production facility. A total of 6,790 minutes are available per month on these machines. Direct labor 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? Total minutes required 6,890 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.) Optimal production 2,023 3,400 1,400

Explanation / Answer

A B C Selling price per unit 59 81.4 74.9 Direct materials 32.9 49.4 55.8 Direct labor 20.3 22.9 13.7 Variable manufacturing overhead 1.3 0.7 0.8 Variable selling cost per unit 0.7 1.1 2.2 Total variable cost per unit 55.2 74.1 72.5 Contribution margin per unit 3.8 7.3 2.4 Mixing minutes per unit . 1.3 1.1 0.3 Contribution margin per minute 2.92 6.64 8.00 Maximum amount per hour = 2.92*60= 175.20 or 175.38(if not rounded off)

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