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Johnson Inc.s constraint is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below: Cabinet

Johnson Inc.s constraint is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below:

Cabinet

Desk

Chair

Selling price per unit

$100

$301

$484

Variable cost per unit

$78

$234

$390

Minutes on the constraint

$1.4

3

7

Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource?

$22.33 per unit

$15.71 per unit

$12.6 per minute

$13.43 per minute

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