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How many of each product should be produced to maximize net operating income? CoursHeroTranscribedText: Gluth...

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Accounting

How many of each product should be produced to maximize net operating income?

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CoursHeroTranscribedText: Gluth Company makes three products in a single facility. These products have the following unit product costs: Products A B C Direct materials P22.50 P22.40 P29.20 Direct labor. 13.60 11.40 12.50 Variable manufacturing overhead 3.00 3.40 4.50 Fixed manufacturing overhead . 19.20 20.10 26.50 Unit product cost P58.30 P57.30 P72.70 Additional data concerning these products are listed below. Products B Mixing minutes per unit 3.30 1.70 1.80 Selling price per unit P74.70 P76.10 P87.50 Variable selling cost per unit. P1.80 P2.40 P2.90 Monthly demand in units.. 4.000 2,000 4,000 The mixing machines are potentially the constraint in the production facility. A total of 23,200 minutes are available per month on these machines. Direct labor is a variable cost in this company

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