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River Plate Company makes four products in a single facility. These products have the following...

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Accounting

River Plate Company makes four products in a single facility. These products have the following unit product costs:

Products
A B C D
Direct Materials $14.30 $10.20 $11.00 $10.60
Direct Labor $19.40 $27.40 $33.60 $40.40
Variable manufacturing overhead $4.30 $2.70 $2.60 $3.20
Fixed manufacturing overhead $26.50 $34.80 $26.60 $37.20
Unit product cost $64.50 $75.10 $73.80 $91.40

Additional data concerning these products are listed below.

Products
A B C D
Processing minutes per unit 3.8 5.3 4.3 3.4
Selling price per unit $76.10 $93.50 $87.40 $104.20
Variable selling cost per unit $2.20 $1.20 $3.30 $1.60
Monthly demand in units 4,000 4,000 3,000 2,000

The Processing machines are potentially the constraint in the production facility. A total of 53,600 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 processing machines?

Product C

Product A

Product B

Product D

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