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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 Fixed
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 Products A B C D $16.80 $20.70 $13.70 $16.40 18.80 22.20 16.60 10.60 5.60 6.80 9.30 6.30 28.70 15.60 15.70 17.70 $69.90 $65.30 $55.30 $51.00 Additional data concerning these products are listed below. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units Products B C D 2.05 1.10 0.65 0.95 $84.70 $77.10 $73.90 $68.60 $ 2.55 $ 3.25 $ 4.00 $ 4.70 4,200 3,200 3,200 5,200 The grinding machines are potentially the constraint in the production facility. A total of 10,500 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 O O Product B O Product D O Product A O O Product C
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