Question

Glocker Company makes three products in a single facility. These products have the following unit product costs: 3 Product B
Additional information about the products: Product В A 2.00 72.20 Mixing minutes per unit Selling price per unit Variable sel

Mitchener Corp. manufactures three products from a common input in a joint processing operation Joint processing costs up to
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Answer #1
A B C
Mixing Minutes per unit 2 0.5 1
Monthly Demand 1,800                     1,600               2,800
Minutes Required 3,600                        800               2,800
i.e. 7,200 minutes
b.Products should be produced in the order of contribution margin per mixing minute
A B C
Selling Price per unit 72.2 46.8 44.4
Direct material 10.9 15.8 12.6
Direct labor 18.5 12.6 9.75
Variable manufacturing overhead 2.4 1.2 1.8
Variable selling cost 2.1 1.4 1.9
Contribution Margin per unit 38.3 15.8 18.35
Mixing Minutes per unit 2 0.5 1
CM per minute 19.15 31.6 18.35
Production Schedule
Product Units Minutes per unit Total Minutes
A 1800 2 3600
B 1600 0.5 800
C 1100 1 1100
Total 5500
3.Maximum amount paid = contriubution margin per minute
=$18.35 per minute since additional time will be used to produce C
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