3. Determine how the production of 192000 units should be allocated between the Peoria and Moline plants to maximize operating income for Domestic Engines. Show your calculations.
All agricultural costs per ace are conducive established on a recognized ability experience consisting of 240 established days. When the calculate of established days exceeds 240, overtime mandible erect the inconstant manufacturing costs of concomitant aces by $3 per ace in Peoria and $8 per ace in Moline.
Domestic Engines Co. is expected to yield and retail 192000 ability generators during the hence year. Wanting to siege habit of the eminent unreserved proceeds per ace at Moline, the company's genesis supervisor has determined to evolution 96000 aces at each insert, outcomeing in a intention in which Moline operates at ability (320 aces per day X 300 days) and Peoria operates at its recognized bulk (400 aces per day X 240 days).
1. Calculate the breakeven top in aces for the Peoria insert and for the Moline insert.
2. Calculate the unreserved proceeds that would outcome from the genesis supervisor's intention to yield 96000 aces at each insert.
3. Determine how the genesis of 192000 aces should be allocated betwixt the Peoria and Moline inserts to maximize unreserved proceeds for Domestic Engines. Show your calculations.