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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 $16.70 $20.60 $13.60 $16.30 18.70 22.10 16.50 10.50 5.50 6.70 9.20 6.20 28.60 15.50 15.60 17.60 $69.50 $64.90 $54.90 $50.60 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 2.00 1.05 0.60 0.90 $84.20 $76.60 $73.40 $68.10 $ 2.45 $ 3.15 $ 3.90 $ 4.60 4,100 3,100 3,100 5,100 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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