Question
Cress Company makes three products in a single facility. Data concerning these products appear below: Products A B C Selling price per unit 40 36
Cress Company makes three products in a single facility. Data concerning these products appear below:
Products
A B C
Selling price per unit 40 36 30
Variable cost per unit 22 20 20
Milling machine minutes per unit 3 2 1
Monthly demand in units 1,000 1,000 1,000
The milling machines are the constraint in the production facility. A total of 2,000 minutes are available per month on these machines. How many units of product A should be produced per month?
Group of answer choices
1,000 units of product A should be produced
no unit of product A should be produced
None of the other answers
500 units of product A should be produced
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren
3rd Edition
0131800345, 978-0131800342
