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Question 24 Mayfield and Hunt Co, based in Cleveland, makes four products (W.X. Y, and Z) in a single facility. These products have the following

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Question 24 Mayfield and Hunt Co, based in Cleveland, makes four products (W.X. Y, and Z) in a single facility. These products have the following unit product costs: Y Z w X $12 $1440 $10 Direct Materials $15 $20 Direct Labor $25 $30 $40 Variable Overhead $4 $2 $1.60 $3 Fred Overhead $24 $35 $26 $38 Unit Product Cost $63 $74 $72 $91 Additional data concerning these products are listed below. W X Y Z Processing 20 3.2 25 4.0 MacBook Pro Additional data concerning these products are listed below. Z W X 4.0 25 3.2 Processing 20 Minutes per Unit $84 $108 Seling Price per Unit $80 $96 Variable Selling Cost per Unit $3 $1 $4 $2 Monthly 4,800 Demand in Units 5,000 3,500 2.400 The processing machines are the constraint in the production facility. A total of 36,750 minutes are available per month on these machines Direct laboris a variable cost in this company, Up to how much should the company be willing to pay for one additional minute of processing machine time if the company has made the best use of the existing machine capacity? $34.00 51325 $13.60 $8.50 MacBook Pro OD 3

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