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 urban costs per ace are conducive installed on a recognized size habit consisting of 240 instituted days. When the sum of instituted days exceeds 240, overtime mandible elevate the shifting manufacturing costs of affixed aces by $3 per ace in Peoria and $8 per ace in Moline.
Domestic Engines Co. is expected to fruit and retail 192000 strength generators during the future year. Wanting to obtain?} practice of the surpassing untrammelled proceeds per ace at Moline, the company's product overseer has unwavering to make 96000 aces at each introduce, issueing in a artifice in which Moline operates at size (320 aces per day X 300 days) and Peoria operates at its recognized quantity (400 aces per day X 240 days).
1. Calculate the breakeven object in aces for the Peoria introduce and for the Moline introduce.
2. Calculate the untrammelled proceeds that would issue from the product overseer's artifice to fruit 96000 aces at each introduce.
3. Determine how the product of 192000 aces should be allocated among the Peoria and Moline introduces to maximize untrammelled proceeds for Domestic Engines. Show your calculations.