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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. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units Products A 1.20 $ 59.30 $ 3.60 4,000 A B 19.90 $15.20 12.20 8.70 10.50 1.60 2.10 2.00 10.80 11.90 8.80 10.70 $ 44.50 $ 37.90 $ 42.10 $ 43.40 C D $20.80 $ 23.20 7.40 2.10 Products B 0.70 $ 51.70 $ 1.50 2,000 0.60 $59.50 $ 2.20 4,000 D 0.68 $ 55.60 $ 3.60 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. How many minutes of grinding machine time would be required to satisfy demand for all four products?
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