Glover Company Makes Three Products in a Single Facility

question 7

Essay

Glover Company makes three products in a single facility. These products have the following unit product costs:
Additional data concerning these products are listed below.
The mixing machines are potentially the constraint in the production facility. A total of 10,900 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?
b. How many units of each product should be produced to maximize net operating income? (Round off to the nearest whole unit.)
c. Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity? (Round off to the nearest whole cent.)

---

Definitions:

Inner Strength

The personal resilience and mental fortitude that enables an individual to face and overcome challenges.

Remaining Married

The state or condition of continuing to be legally united in marriage, especially in the face of challenges.

Family Therapist

A mental health professional specialized in treating emotional and relational issues within the family system through psychotherapy.

Unsatisfying Marriage

A marital relationship in which one or both partners experience discontentment, lack of fulfillment, or unhappiness.