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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 $17.10 $21.00 $14.00 $16.70 19.10 22.50 16.90 10.90 5.90 7.10 9.60 6.60 29.00 15.90 16.00 18.00 71.10 66.50 56.50 52.20 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 B D 2.20 1.25 0.80 1.10 $86.20 $78.60 $75.40 $70.10 $ 2.85 $ 3.55 $ 4.30 $ 5.00 4,500 3,500 3,500 5,500 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 Product A a Product B O Product D O O Product C
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