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Romina Ltd manufactures three different product lines, Model A, Model B, and model C. Considerable...

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Accounting

Romina Ltd manufactures three different product lines, Model A, Model B, and model C. Considerable market demand exists for all models. The following per unit data apply:

Model A Model B Model C
Selling price $844 $871 $869
Direct materials $66 $63 $79
Direct labour ($80 per hour) 1.2 hours 1.7 hours 1.3 hours
Variable support costs $146 $187 $182
Machine-hours per unit 2 hours 0.8 hours 2.5 hours

Calculate the highest operating income (rounded using two decimals) the company could achieve using the short-run profit maximising strategy if the maximum machine-hours available are 4,043 per month. Total fixed costs per month are $950,000.

corect answer is 1,501,068.75 0.1. how did they get this?

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