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Peach Company makes 3 products in a single facility. The products have the following unit costs: Products A B C Direct Materials 12.50 14.40 10.30
Peach Company makes 3 products in a single facility. The products have the following unit costs: Products A B C Direct Materials 12.50 14.40 10.30 Direct Labor 8.60 9.40 6.70 Variable MOH 1.10 2.20 20 Fixed MOH 9.90 7.50 11.80 The following additional information is known about each product: Products A B C Packaging Minutes per unit 2.80 4.20 3.70 Selling Price per unit 61.50 66.70 77.30 Variable selling costs per unit 2.90 1.10 2.30 Monthly demand in units 1000 600 1400 The packaging machines are a potential constraint in the production facility. A total of 12,000 minutes are available each month on the machines. What is the contribution margin per minute of product B? Round your answer to 1 d.p.
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