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Assume a company makes four products (A, B, C, and D) in a single facility. Data concerning these products appear below: Product A Product
Assume a company makes four products (A, B, C, and D) in a single facility. Data concerning these products appear below: Product A Product B Selling price per unit $ 42.30 $ 50.00 Product C $ 37.60 Product D $ 33.50 Variable manufacturing cost per unit $ 20.80 $ 30.70 $ 21.00 $ 19.90 Variable selling cost per unit $ 2.70 Milling machine minutes per unit Monthly demand in units 3.30 1,000 $ 2.10 4.10 4,000 $ 1.00 2.60 3,000 $ 2.40 1.30 3,000 Multiple Choice The milling machines are the constraint in the production facility. A total of 14,000 minutes are available per month on these machines. Which of the four products has the highest contribution margin per unit of the constraining resource? Product D Product B Product C Product A
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