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Cranston Corporation makes four products in a single facility. Data concerning these products appear below: Products A B C D Selling price per unit $
Cranston Corporation makes four products in a single facility. Data concerning these products appear below:
Products | ||||||||
A | B | C | D | |||||
Selling price per unit | $ | 42.30 | $ | 50.00 | $ | 37.60 | $ | 33.50 |
Variable manufacturing cost per unit | $ | 20.80 | $ | 30.70 | $ | 21.00 | $ | 19.90 |
Variable selling cost per unit | $ | 2.70 | $ | 2.10 | $ | 1.00 | $ | 2.40 |
Milling machine minutes per unit | 3.30 | 4.10 | 2.60 | 1.30 | ||||
Monthly demand in units | 1,000 | 4,000 | 3,000 | 3,000 | ||||
The milling machines are potentially the constraint in the production facility. A total of 28,200 minutes are available per month on these machines.
How many minutes of milling machine time would be required to satisfy demand for all four products?
Multiple Choice
11,000
28,200
23,500
31,400
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