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Crane Company makes four products in a single facility. Data concerning these products appear below: Product A B C D Selling price per unit $35.30
Crane Company makes four products in a single facility. Data concerning these products appear below:
Product
A B C D
Selling price per unit $35.30 $30.20 $20.80 $26.00
Variable manuf. cost per unit $16.50 $15.80 $7.90 $8.50
Variable selling cost per unit $3.80 $1.60 $1.90 $3.30
Milling machine minutes per unit 3.30 1.70 2.10 2.50
Monthly demand in units 4,000 1,000 3,000 1,000
The milling machines are potentially the constraint in the production facility. A total of 22,600 minutes is available per month on these machines.
Up to how much should the company be willing to pay for one additional hour of milling machine time if the company has made the best use of the existing milling machine capacity? (Round off to the nearest whole cent.)
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