Question 2: AL-Etihad Company makes three products in a single facility. Data concerning these products follow: per unit

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Question 2 Al Etihad Company Makes Three Products In A Single Facility Data Concerning These Products Follow Per Unit 1 (82.03 KiB) Viewed 69 times

Question 2: AL-Etihad Company makes three products in a single facility. Data concerning these products follow: per unit PRODUCTS A B С $ 70.00 $ 92.40 $ 85.90 $ 34.00 $ 50.50 $ 56.90 $ 21.40 $ 24.00 $ 14.80 $ 1.20 $ 0.60 $ 0.50 $ 1.80 $ 2.30 $ 2.10 2,000 units 4,000 units 2,000 units 1.20 hours 0.80 hours 0.40 hours Selling price per unit Direct Materials Direct Labor per unit Variable manufacturing overhead per unit Variable selling cost per unit Monthly demand in unit Machine hours per unit The machines hours are potentially the constraint in the production facility. variable cost in this company. A total of 6,300 hours are available per month on these machines. Direct labor is a Required: 1. How many hours of machine time would be required to satisfy demand for all three products? 2. How much of each product should be produced to maximize net operating income? (Round off to the nearest whole unit.) 3. Up to how much should the company be willing to pay for one additional hour of machine time if the company has made the best use of the existing machine capacity? (Round off to the nearest whole cent.)