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All fixed posts per unit are calculated based on a normal capacity usage consisting at...

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Accounting

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All fixed posts per unit are calculated based on a normal capacity usage consisting at 240 working days. When the number of working days exeeeds240 overtime charges raise the variable manufacturing costs of additional units by Domestic Engines Co. is expected to produce and sell 182,000 power generators during the coming year. Wanting to take advantage of the higher operating income per unit at the company's production manager has decided to manufacture 96,000 units at each plant, resulting in a plan in which operates at capacity (320 units per day times 300 days) and Peoria operates as its normal volume (400 units per day times 240 days). Calculate the breakeven point in units for the Peoria plant and for the Moline plant. Calculate the operating income that would result from the production manager's plan to produce 96,000 units at each plant. Determine how the production of 192,000 units should be allocated between the Peoria end Maine plants to maximize operating income for Domestic Engines. Show your calculations

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