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3.-On-the-Move, Inc., manufactures two types of roof racks for automobiles: BikeRac and Kayak Rac. Data concem- ing selling prices and costs for cach unit follow: 1 Bike Rac Kayak Rac . 44 Selling price.... Materials (variable) Direct labor (variable) Overhead (90% fixed) Gross margin Marketing costs (variable) Administrative costs (fixed). $100 26 5 50 S 19 4 10 5 $80 23 4 40 $13 4 8 Profit.... M Management decided that at least 5,000 BikeRacs and at least 2.000 Kayak Racs must be manufactured and sold each month. The company's production facilities are limited by machine capacity in the Assembly Department. Each BikeRac requires 6 minutes and each Kayak Rae requires 3 minutes in the Assembly Department. A total of 650 hours (39.000 minutes) is available per month in the Assembly Department there are no other relevant constraints on production. a. What is the contribution per unit for BikeRacs? For Kayak Racs? b. At the required monthly levels of production (5,000 BikeRaes and 2.000 Kayak Racs), how many minutes are used in the Assembly Department? c. Suppose there is unlimited demand for BikeRacs and Kayak Racs at current prices. What production schedule (number of BikeRacs and number of Kayak Racs) should On-the- Move adopt to maximize profit while meeting its constraint to produce and sell at least 5.000 BikeRacs and 2,000 Kayak Racs. d. Suppose demand is limited to 2.500 units of Kayak Racs. What production schedule should On-the-Move adopt to maximize profit while meeting its constraint on the minimum levels for the two products

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