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Magic Elite Company manufactures two popular candy bars, the Eclipse bar, and the Nova bar....

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Accounting

Magic Elite Company manufactures two popular candy bars, the Eclipse bar, and the Nova bar. Both candy bars go through a mixing operation where the various ingredients are combined, and the Coating Department where the bars from the Mixing Department are coated with chocolate. The Eclipse bar is coated with both white and dark chocolate to produce a swirled effect. A material shortage of an ingredient in the Nova bar limits

production to 300 batches per hour. Production and sales data are presented in the following table.

image
CoursHeroTranscribedText: Mixing Coating Available capacity in hours 525 500 Use of capacity in hours per batch of product: Eclipse 1.5 2.0 Nova 1.5 1.0 Management believes that {SalaamI can sell all of its daily production of both the Eclipse and Nova bars. Other data follow: Eclipse Nova Selling price per batch P600 P?00 Variable cost per batch 200 450

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