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TB MC Qu. 6-132 (Algo) Bruce Corporation makes four products... Bruce Corporation makes four products in a single facility. These products have the following
TB MC Qu. 6-132 (Algo) Bruce Corporation makes four products... Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Fixed manufacturing overhead Variable manufacturing overhead Unit product cost Additional data concerning these products are listed below. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units Products A B D $ 17.50 $21.40 $ 14.40 $ 17.10 19.50 22.90 17.30 11.30 6.30 29.40 7.50 10.00 7.00 16.30 16.40 18.40 $ 72.70 $ 68.10 $ 58.10 $ 53.80 Products A 2.40 $ 88.20 B D 1.45 $ 80.60 1.00 $ 77.40 1.30 $ 72.10 $ 3.25 4,900 $ 3.95 $ 4.70 $ 5.40 3,900 3,900 5,900 The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available per month on these machines. Direct labor is a variable cost in this company. Which product makes the MOST profitable use of the grinding machines? Note: Round your intermediate calculations to 2 decimal places. Multiple Choice Product B Product A Product D Product C
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