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Use the following to answer questions 7-10: Crawshan Company makes four products in a single facility. Data concerning these products appear below: Product Product Product
Use the following to answer questions 7-10: Crawshan Company makes four products in a single facility. Data concerning these products appear below: Product Product Product Product $38.50 $33.80 $37.70 $38.60 $23.20 $25.70 Variable manufacturing cost per unit.. Variable selling cost per unit....." Milling machine minutes per unit.... $19.50 S3.00 $2.90 $3.50 $1.10 3.002.50 $22.10 3.00 3.20 2,000 ,000 3,000 ,000 The milling machines are potentially the constra minutes are available per month on these machines int in the production facility. A total of 17,000 7. How many minutes of milling machine time would be required to satisfy demand for all four products? A) 19,900 B)17,000 C) 14,600 D) 7,000 8. Which product makes the LEAST profitable use of the milling machines? A) Product A B) Product B C) Product C D) Product D 9. Which product makes the MOST profitable use of the milling machines? A) Product A B) Product B C) Product C D) Product D 10. Up to how much should the company be willing to pay for one additional minute of milling machine time if the company has made the best use of the existing milling machine capacity? (Round off to the nearest whole cent.) A) $11.00 B) S0.00 C) $3.80 D) $13.40
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