Required to meet the demand for all three products

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Reference no: EM131292917

The Gant Company produces three items in its manufacturing plant. The plant has a total capacity of 9,600 minutes per month for production. The following information is provided for the products:

Products

X Y Z

Direct material $16 $10 $14

Direct labor (all variable) 15 14 15

Variable overhead 2 3 4

Fixed overhead 20 23 30

Unit cost $53 $50 $63

Minutes required per unit 5 4 6

Selling price per unit $70 $65 $80

Variable selling expense per unit $5 $4 $2

Monthly demand in units 2,200 1,000 800

Required:

1. How many minutes would be required to meet the demand for all three products?

2. How many units of each product should Gant produce to maximize profit? Show your calculations?

Reference no: EM131292917

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