1. Cranston Corporation makes four products in a single facility. Data concerning these products appear below:

	Products
	A		B		C		D
Selling price per unit	$	42.30	$	50.00	$	37.60	$	33.50
Variable manufacturing cost per unit	$	20.80	$	30.70	$	21.00	$	19.90
Variable selling cost per unit	$	2.70	$	2.10	$	1.00	$	2.40
Milling machine minutes per unit		3.30		4.10		2.60		1.30
Monthly demand in units		1,000		4,000		3,000		3,000

The milling machines are potentially the constraint in the production facility. A total of 28,200 minutes are available per month on these machines.

How many minutes of milling machine time would be required to satisfy demand for all four products?

Multiple Choice

• 11,000

• 28,200

• 23,500

• 31,400

2. Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $53 to buy from farmers and $18 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $25 or processed further for $18 to make the end product industrial fiber that is sold for $39. The beet juice can be sold as is for $32 or processed further for $28 to make the end product refined sugar that is sold for $79.

What is the financial advantage (disadvantage) for the company from processing the intermediate product beet juice into refined sugar rather than selling it as is?

Multiple Choice

• $1 per batch

• ($17) per batch

• $19 per batch

• ($52) per batch