Question

could anyone confirm these answers and tell me how they got them if they are correct, please & thank you

Glocker Company makes three products in a single facility. These products have the following unit product costs: $ 12.60 9.75 1.80 9.60 $ 33.75 El Product A Direct Materials $ 10.90 $ 15.80 5 Direct Labor 18.50 12.60 7 Variable Manufacturing Overhead 2 .40 1.20 8 Fixed Manufacturing Overhead 11.60 7.20 9 Unit product cost $ 43.40 $ 36.80 10 11 12 Additional information about the products: 13 Product 14 A B 15 Mixing minutes per unit 2.00 0.50 16 Selling price per unit 72.20 46.80 17 Variable selling cost per unit 2.10 1.40 18 Monthly demand in units 1,800 1,600 D C 1.00 44.40 1.90 2,800 19 21 The mixing machines are potentially the constraint in the production facility. 22 A total of 5,500 minutes are available per month on these machines. 23 Constraint

Answer 1

Solution:

1.)

Product	A	B	C	Total
Mixing minutes per unit	2	0.50	1
Monthly demand in units	1800	1600	2800
Mixing minutes required	3,600 ( 2 × 1,800)	800(0.50 ×1,600)	2,800(1 × 2,800)	7,200 minutes

b.)

	A	B	C
Selling price per unit	$72.2	$46.8	$44.4
Direct materials	$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 per unit	$2.1	$1.4	$1.9
Variable cost per unit	$33.9	$31	$26.05
Contribution margin per unit	$38.3	$15.8	$18.35
Mising minutes per unit	2	0.5	1
Contribution margin per mixing minute	$19.15	$31.6	$18.35

The production units should be:

Minutes available	5,500
Satisfy demand for A	(3,600)	1800 units ×2minutes per unit
Hours remaining	1,900
Satisfy demand for B	(800)	1600 units × 0.5
Use capacity to produce C	(1100)	1100 remaining/1.00 minutes per unit

3.)

The company should be willing to pay up to the contribution margin per unit for the marginal job, which is $18.35.

* your answer is correct.

Please see the answer.