Crane Corporation makes four products in a single facility. Data concerning these products appear below:...
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Accounting
Crane Corporation makes four products in a single facility. Data concerning these products appear below:
|
| Products | |||
| A | B | C | D | |
| Selling price per unit | $35.30 | $30.20 | $20.80 | $26.00 |
| Variable manufacturing cost per unit | $16.50 | $15.80 | $7.90 | $8.50 |
| Variable selling cost per unit | $3.80 | 1.60 | 1.90 | 3.30 |
| Milling machine minutes per unit | 3.30 | 1.70 | 2.10 | 2.50 |
| Monthly Demand in Units | 4,000 | 1,000 | 3,000 | 1,000 |
The milling machines are potentially the constraint in the production facility. A total of 22,600 minutes are available per month on these machines.
Which product makes the MOST profitable use of the milling machines?
Product A
Product B
Product C
Product D
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