Mobley Company Makes Three Products in a Single Facility

question 120

Essay

Mobley Company makes three products in a single facility.Data concerning these products follow:

The mixing machines are potentially the constraint in the production facility.A total of 6,300 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 much 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. )

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Definitions:

Document

A written, drawn, presented, or memorialized representation of thought, often in physical or digital form.

Typeface

The design of a set of characters including letters, numbers, and symbols that share a common design theme.

Business Message

A communication conveyed by a company to its audience, including information, promotions, or updates.

Italic Type

A font style in which the text is slanted to the right, often used for emphasis or distinction.