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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 B C D $16.40 $20.30 $13.30 $16.00 18.40 21.80 16.20 10.20 5.20 6.408.90 5.90 28.30 15.20 15.30 17.30 68.30 63.70 53.70 49.40 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 C D 2.40 1.50 1.10 0.70 $82.70 $75.10 $71.90 $66.60 $ 3.40 $ 3.90 $ 3.60 $ 4.30 3,800 2,800 2,800 4,800 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 B O Product A Product A O Product C Product C Product D
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