Tektonic company produces three products, lightning, plates and thunder. lightning sells for $40, plates for...
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Accounting
Tektonic company produces three products, lightning, plates and thunder. lightning sells for $40, plates for $80 and thunder for $60.
Variable costs per product:
| Variable cost | lightning | plates | thunder |
| Direct materials | $12 | $20 | $16 |
| Direct labour | $3 | $15 | $20 |
| Other variable | $19 | $25 | $14 |
All three products use same material, Ground. The demand for product far exceeds the direct material available to produce the products. Ground costs $4 per unit and a maximum of 4,000 units are available each month. Tektonic must produce a minimum of 250 of each product. How many units of Ground will thunder use to produce the required amount to maximum its operating margin?
plz put work & calculations
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