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2019_Fall Final single facility. These products have the following unit XYZ 9 Springfield Company makes two products in a single facility. These product costs: Products

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2019_Fall Final single facility. These products have the following unit XYZ 9 Springfield Company makes two products in a single facility. These product costs: Products Selling price per unit Monthly demand in units Variable Cost of Production per unit: Direct material Direct labor Variable manufacturing overhead Variable product cost per unit Additional data concerning these products are listed below. Products Mixing minutes required per unit $70.00 2,000 STW $65.00 4,000 $11.00 $16.00 $5.00 $12.00 $14.00 $5.00 $31.00 $32.00 The mixing machines are potential STW ing machines are potentially the constraint in the production facility. Since Springfield expects to have minutes next month, they decided to inquire about the possibility of renting a mixing machine from another company that would provide additional 5.000 minutes. Up to how much should the company be willing to pay for the machine? Assume that the company has made the best use of the existing mixing machine capacity. A. $39,800 B. $38,000 C. $42,500 D. $40,700 E. None of the above

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