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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 Product C Product 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 Monthly demand in units 3.30 1,000 4.10 4,000 2.60 3,000 1.30 3,000 The milling machines are the constraint in the production facility. A total of 13,400 minutes is available per month on these machines. The highest possible contribution margin that the company can earn if it makes optimal use of its constraining resource is closest to: Note: Round "Contribution margin per minute" to 2 decimal places. Multiple Choice $94,708. $86,008. $90,108. $97,908.
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