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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