Solved by Expert Tutors
Solved by Expert Tutors
Question

This is for intro managerial accounting, thank you

Question 3: (12 marks)
In addition to making hand sanitizer, Sanitex Inc, also manufactures three different
models of facemasks used in the health care industry. Because of the Covid-19 pandemic,
the demand for all three models of masks will remain strong. For the upcoming month,
the manager of operations estimates that &quot;Woyex&quot; the special fabric used in making all
three masks, will be in short supply. According to the production manager's estimates,
Sanitex will only be able to secure 5,000 meters of the fabric for the next month of
production. The purchase price for Woyex is \$80.00 per meter. Information relating to
the manufacturing and sales of the three models of facemasks follows:
XI
X2
X3
Basic Model
Better Model
Best Model
Estimated Monthly Demand
50,000 units
75,000 units
150,000 units
Unit Selling Price
\$5.75
\$8.20
\$10.25
Unit Manufacturing Costs.
Wokex - Direct Material
\$2.00
\$3.60
\$4.80
Direct Labor
\$0.75
50.90
\$1.05
Variable MOH
\$1.50
\$1.80
\$2.10
Total Variable Unit Cost
\$4.25
\$6.30
\$7.95
Note to students: Answer the question in the Excel worksheet template under the
tab &quot;Question 3&quot; provided by your instructor.
Required:
Determine how many units of each type of masks that Sanitex should make for the
upcoming month.

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