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Broze Company makes four products in a single facility. These products have the following unit product costs: Costs per unit Unit product costs Direct
Broze Company makes four products in a single facility. These products have the following unit product costs: Costs per unit Unit product costs Direct Materials Direct labor Product A $14.30 Product B Product C Product D $10.20 $11.00 $10.60 $19.40 $27.40 $33.60 $40.40 Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $4.30 $2.70 $2.60 $3.20 $26.50 $34.80 $26.60 $37.20 $64.50 $75.10 $73.80 $91.40 Additional data concerning these products are listed below: Additional product data per unit Components Product A Product B Product C Product D Grinding minutes per unit 3.80 5.30 4.30 3.40 Selling price per unit $76.10 $93.50 $87.40 $104.20 Variable selling cost per unit Monthly demand in units $2.20 4,000 $1.20 $3.30 $1.60 4.000 3.000 2,000 The grinding machines are potentially the constraint in the production facility. A total of 53,600 minutes are available per month on these machines. Direct labor is a variable cost in this company. Question Which product makes the least profitable use of the grinding machines? O Product A O Product B O Product C O Product D
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