Best use of the existing mixing machine capacity

Assignment Help Finance Basics
Reference no: EM13874455

Holvey 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 Products A B C Sales price per unit $70 $92.40 $85.90 Direct Materials 34 50.50 56.90 Direct Labor 21.40 24 14.80 Variable Man. Over. 1.20 $ .60 $ .50 Var. Selling cost per unit 1.80 2.30 2.10 Mixing Minutes per unit 1.20 .80 .40 Monthly Demand in Units 2,000 4,000 2,000

Required (SHOW ALL WORK) :

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.) Please show all work

Reference no: EM13874455

Questions Cloud

What values are involved in this dispute : Other than reasoning and logical persuasion, what is the major alternative for resolving conflicts? Of course, the most common alternatives have been force and violence.
What is the competitive price for pc operating systems : How would you go about establishing whether Microsoft possesses market power in the relevant antitrust market? What is the competitive price for PC operating systems?
Prepare a schedule to determine shaquera corporation''s : Shaquera Corporation began the current year with inventory of $50,000.
What is the play hairy ape : What is the play "Hairy Ape" about? Are there online audiobooks?
Best use of the existing mixing machine capacity : Holvey 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.
Describe role of a specific counterterrorism organization : Describe the role of a specific counterterrorism organization (US or foreign), what role they play in counterterrorism and an example of where they have been used. (Minimum of 250 words only)
Discuss what this suggests about the united states'' absolute : Discuss what this suggests about the United States' absolute
Would merger qualify for further scrutiny under guidelines : The merged firm is initially assumed to have twice the market share of the other firms. Would this merger qualify for further scrutiny under the guidelines?
Many teachers agree that one''s language skills : Many teachers agree that one's language skills ---- by listening to others. could have improved

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd