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Gastineau Corporation's two products have the following characteristics: J45Z W47E Selling price $285.00 $168.00 Unit variable cost $228.00 $134.40 Monthly demand (units) 390 910 The
Gastineau Corporation's two products have the following characteristics:
J45Z | W47E | |
Selling price | $285.00 | $168.00 |
Unit variable cost | $228.00 | $134.40 |
Monthly demand (units) | 390 | 910 |
The constrained resource is a particular machine that is available for 9,600 minutes each month. Each unit of product J45Z requires 19 minutes on this machine and each unit of product W47E requires 7 minutes on this machine. Up to how much should the company be willing to pay to obtain enough of the constrained resource to satisfy demand for the two existing products?
$33.60 per minute | ||
$3.00 per minute | ||
$4.80 per minute | ||
$57.00 per minute |
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