Hon Company Makes Three Products in a Single Facility

question 86

Essay

Hon 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 24,500 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:

Public Relations Activities

Public Relations activities involve strategic communication processes that build mutually beneficial relationships between organizations and their publics.

New Media Opportunities

pertain to the possibilities for communication, interaction, and business that arise from digital platforms like social media, blogs, and websites.

Metric Tools

Quantitative measures used to assess, compare, and track performance or progress towards objectives over time.

Real-Time Adjustments

Making immediate changes or alterations in response to events as they happen, often used in marketing, broadcasting, and trading contexts.