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anhtuan anhtuan
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A month ago
Holt Manufacturing Company produces three products in its Dallas factory. Data relating to the products are given below:

​​Product AProduct BProduct C
Unit selling price$80$70$60
Variable manufacturing costs525046
Variable selling costs444
Hours required per unit21/21
Demand per period3,0004,0002,600

A total of 8,200 hours are available in the Dallas facility.

Required:
a.How many hours will be required to satisfy the demand for all three products?
b.How much of each product should be produced to maximize Holt's operating income?
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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Zigdog4400Zigdog4400
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A month ago
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More solutions for this book are available here
a.
​​Product AProduct BProduct C
Hours required per unit20.501
Demand per period3,0004,0002,600
Hours required6,0002,0002,600

Total time = 6,000 + 2,000 + 2,600 = 10,600 hours

b.
​​Product AProduct BProduct C
Unit selling price$80$70$60
Variable manufacturing cost  52  50  46
Variable selling costs    4    4    4
Contribution margin$24$ 16$10
Hours required per unit    2 0.5    1
Contribution per hour$12$32$10
Order of production2nd 1st3rd
Units to be produced3,0004,000200

Product A3,000 × 2 = 6,000hours used
Product B4,000 × 0.5 = 2,000hours used
Product C     200 × 1 =      200hours used
8,200
1

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anhtuan Author
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A month ago
This calls for a celebration Person Raising Both Hands in Celebration
zbmallo3
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Good timing, thanks!
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Brilliant ツ
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