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Which product makes the MOST profitable use of the grinding machines? (Round your intermediate calculations...

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Accounting

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Which product makes the MOST profitable use of the grinding machines? (Round your intermediate calculations to 2 decimal places.)

  • Product D

  • Product C

  • Product A

  • Product B

Bruce Corporation makes four products in a single facility. These products have the following unit product costs Products Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost $16.50 $20.40 $13.40 $16.10 18.50 21.90 16.30 10.30 5.30 6.50 9.00 6.00 28.40 15.30 15.40 17.40 68.70 64.10 54.10 49.80 Additional data concerning these products are listed below Products Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units 2.45 1.55 1.15 0.75 $83.20 $75.60 $72.40 $67.10 $ 3.50 4.00 $ 3.70 $ 4.40 3,900 2,900 2,900 4,900 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

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