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Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead
Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. Products A B C $15.30 $11.20 $ 12.00 D $ 11.60 20.40 5.30 28.40 34.60 41.40 3.70 3.60 4.20 27.50 35.80 27.60 38.20 $68.50 $ 79.10 $ 77.80 $ 95.40 Products Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units A B C 4.80 $ 77.10 6.30 5.30 $ 3.20 5,000 $ 94.50 $ 2.20 5,000 $ 88.40 $ 4.30 4,000 D 4.40 $ 105.20 $ 2.60 3,000 The grinding machines are potentially the constraint in the production facility. A total of 89,600 minutes are available per month on these machines. Direct labor is a variable cost in this company Up to how much should the company be willing to pay for one additional minute of grinding machine time if the company has made the best use of the existing grinding machine capacity? (Round your intermediate calculations to 2 decimal places.)
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