Subject name: Accounting & Finance Decision-Making Mangers

The below problem is a Differential Analysis problem, including *****Constraint type problem*** Please utilize differential analysis to solve the problems. Please show all work and responses in the answer with an explanation... on the Excel worksheet with formulas. 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)				9	3	7

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?