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12.2) Peach Company makes 3 products in a single facility. The products have the following unit costs: Products A B C Direct Materials 12.90 11.80
12.2) Peach Company makes 3 products in a single facility. The products have the following unit costs:
A | B | C | |
Direct Materials | 12.90 | 11.80 | 11.30 |
Direct Labor | 5.70 | 5.20 | 8.10 |
Variable MOH | 5.80 | 5.40 | 4.10 |
Fixed MOH | 11.10 | 7.20 | 10.30 |
The following additional information is known about each product:
A | B | C | |
Packaging Minutes per unit | 2.60 | 2.40 | 3.90 |
Selling Price per unit | 71.40 | 64.30 | 71.50 |
Variable selling costs per unit | 30 | 1.30 | 2.70 |
Monthly demand in units | 1100 | 1000 | 900 |
The packaging machines are a potential constraint in the production facility. A total of 12,000 minutes are available each month on the machines.
What is the contribution margin per minute of product B?
Round your answer to 1 d.p.
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