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Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products Direct materials Direct labor Variable manufacturing overhead
Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $15.70 $19.60 $12.60 $15.30 17.70 21.10 15.50 9.50 4.50 5.70 8.20 5.20 27.60 14.50 14.60 16.60 65.50 60.90 50.90 46.60 Additional data concerning these products are listed below Products Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units 2.05 1.15 0.75 0.35 $79.20 $71.60 $68.40 $63.10 $ 2.70 3.20 2.90 $ 3.60 3,100 2,100 2,100 4,100 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.)
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