Bruce Corporation makes four products in a single facility. These products have the following unit product costs:

	Products
	A		B		C		D
Direct materials	$	19.90	$	15.20	$	20.80	$	23.20
Direct labor		12.20		8.70		10.50		7.40
Variable manufacturing overhead		1.60		2.10		2.00		2.10
Fixed manufacturing overhead		10.80		11.90		8.80		10.70
Unit product cost	$	44.50	$	37.90	$	42.10	$	43.40

Additional data concerning these products are listed below.

	Products
	A		B		C		D
Grinding minutes per unit		1.00		0.70		0.60		0.40
Selling price per unit	$	59.30	$	51.70	$	59.50	$	55.60
Total variable cost per unit		33.70		26.00		33.30		32.70
Contribution margin per unit	$	25.60	$	25.70	$	26.20	$	22.90
Monthly demand in units		4,000		2,000		4,000		2,000

The grinding machines are potentially the constraint in the production facility. A total of 9,000 minutes are available per month on these machines.

Direct labor is a variable cost in this company.

Which product makes the MOST profitable use of the grinding machines? (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

• Product B

• Product C

• Product D

• Product A