Gabby Inc. produces three products. Data concerning the selling prices and unit costs of the three products appear below:

Product

A B C

Selling price $$70$ $$50$ $$80$

Variable costs $$45$ $$35$ $$50$

Fixed costs $$23$ $$6$ $$20$

Grinding machine time $($minutes$)937$

Fixed costs are applied to the products on the basis of direct labor hours.

Demand for the three products exceed the company's productive capacity.

The grinding machine is the constraint with only $2,400$ minutes of grinding time available per week.

Required:

a$)$ Given the grinding machine constraint, which product should be emphasized? Support your answer with appropriate calculations

b$)$ Fixed costs are applied to the products on the basis of direct labor hours.

Demand for the three products exceed the company's productive capacity.

The grinding machine is the constraint with only $2,400$ minutes of grinding time available per

week.

Required:

a$)$ Given the grinding machine constraint, which product should be emphasized? Support

your answer with appropriate calculations

b$)$ Assuming that there is still unfilled demand for the product that the company should

emphazie in part $($a$)$ above, up to how much should the company be willing to pay for an

additional hour of grinding machine time?Assuming that there is still unfilled demand for the product that the company should emphazie in part $($a$)$ above, up to how much should the company be willing to pay for an additional hour of grinding machine time?