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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
yalue: Glocker Company makes three pmchcts in a single facility. These products have the following unit product
costs: Product
A B {3
Direct matefials 5 34.20 iii 50.?0 95 5?.10
Direct labor $ 21.60 5 24.20 $ 15.00 ‘ul'an'able manufactun'ng overhead 5 1.40 3’5 0.30 5 0.?0
Fixed manufacturing overhead 11.30 6.90 150 Unit pmduct cost $50.50 $32.60 $80.30 Additional data concerning these products are listed below. Mixing minutes per unit 1.40 1.00 0.20
Seling price per unit i T200 :5 04.40 $ 8?.90
‘ul'an'able seling cost per unit 5 2.00 3’5 2.50 $ 2.30
Monthly demand in units 2,200 $200 2,200 The mixing machines are potentialy the constraint in the production facility. A total of 1620 minutes are
available per month on these machines. Direct labor is a 1llariable cost in this company. Required:
a. HOW many minutes of nixing machine time wwld be required to satisfy demand for all three products? —j! b. HOW much of each product should be prochced to maximize net operating income? {Round your
intennediate calculations to 2 decinal places and final answers to the nearest Ill'role number.] ! Optimal pmduction i i |
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