Question
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.
Which product makes the MOST profitable use of the milling machines? (Round your intermediate calculations to 2 decimal places.)
Garrison 16e Rechecks 2017-09-13
Multiple Choice
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Product A
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Product B
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Product C
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Product D
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
