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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: 10 Selling price per
Assume a company makes four products (A, B, C, and D) in a single facility. Data concerning these products appear below: 10 Selling price per unit Variable manufacturing cost per unit Variable selling cost per unit Milling machine minutes per unit Monthly demand in units Product A Product B Product C Product D $42.30 $50.00 $37.60 $33.50 $20.80 $30.70 $21.00 $19.90 $ 2.70 $ 2.10 $ 1.00 $ 2.40 3.30 4.10 2.60 1.30 1,000 4,000 3,000 3,000 The milling machines are the constraint in the production facility. A total of 14,000 minutes is available per month on these machines. Up to how much should the company be willing to pay for one additional minute of milling machine time if the company has made the best use of the existing milling machine capacity? The milling machines are the constraint in the much should the company be willing to pay foi milling machine capacity? 10 Multiple Choice $8.62 $5.70 $6.00 $4.20 11 Assume that a company makes three products-Product A, Product B, and Product C- and provides the following information with respect to those products Product A Product B Product C $70 $75 $85 Selling price Variable costs per unit: Direct materials Direct labor Variable overhead Total variable cost per unit Contribution margin per unit 16 40 2 58 $12 24 28 2 54 $21 20 32 3 55 $30 The company incurs total fixed costs of $50,000 The maximum demand for each of products is 600 units. Its direct material cost is $8.00 per pound. The company has only 1,400 pounds of direct materials available for production Assuming the company has made optimal use of its 1400 pounds off direct material, what is the maximum amount per pound the company should be willing to pay for additional direct materials? The company incurs total fixed costs of $50,000. The m pound. The company has only 1,400 pounds of direct m pounds off direct material, what is the maximum amoun 11 Multiple Choice O $14.00 O $20.00 O O $15.00 O $16.00
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