Question
Crane Company makes four products in a single facility. Data concerning these products appear below: Product A Selling Price per Unit = $35.30 Variable Manufacturing
Crane Company makes four products in a single facility. Data concerning these products appear below:
Product A
Selling Price per Unit = $35.30
Variable Manufacturing Cost per Unit =$16.50
Variable Selling Cost per Unit =$3.80
Milling Machine Minutes per Unit = 3.30
Monthly Demand in Units = 4,000
Product B
Selling Price per Unit =$30,20
Variable Manufacturing Cost per Unit=$15.80
Variable Selling Cost per Unit =$1.60
Milling Machine Minutes per Unit =1.70
Monthly Demand in Units =1,000
Product C
Selling Price per Unit = $20,80
Variable Manufacturing Cost per Unit =$7.90
Variable Selling Cost per Unit =$1.90
Milling Machine Minutes per Unit = 2.10
Monthly Demand in Units =3,000
Product D
Selling Price per Unit= $26.00
Variable Manufacturing Cost per Unit =$8.50
Variable Selling Cost per Unit =$3.30
Milling Machine Minutes per Unit =2.50
Monthly Demand in Units =1,000
The milling machines are potentially a constraint in the production facility. A total of 22,600 minutes are available per month on these machines.
15.How many minutes of milling machine time would be required to satisfy demand for all four products?
A.9,000 minutes.
B.18,400 minutes.
C.22,600 minutes.
D.23,700 minutes
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