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DO NOT COPY FROM PREVIOUS CHEGG'S ANSWER, THEY ARE WRONG, I WILL DOWNVOTE.
ABC Company has two products, X and Y. Both products are produced on the same machine. The maximum operating capacity of the machine is 5,500hours. X requires 3 hours of machine time, while Y requires 5 hours o machine time. Other data regarding X and Y are as follows: x Y 128.00 6.00 98.00 3.50 15.00 15.00 Selling price per unit Direct materials per unit Direct labour cost per hour Variable MOH per DLH FOH rate per MH Variable selling & Admin 6.60 5.50 4.00 4.00 25.00 20.00 Product X requires 2.5 DLHs and Product Y requires 1.5 DLHs. Total fixed manufacturing costs for the year are 22,000. The demand for Product X is 600 units and the demand for product Y is unlimited. Fixed selling and admin costs are 8,000. Required: What is the optimal production quantity of Product X and Product-Y? 25
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