Broze company makes four products in a single facility

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Reference no: EM13923748

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

	Products
	A		B		C		D
Direct materials	$13.50		$9.40		$10.20		$9.80
Direct labor	18.60		26.60		32.80		39.60
Variable manufacturing overhead	3.50		1.90		1.80		2.40
Fixed manufacturing overhead	25.70		34.00		25.80		36.40
Unit product cost	$61.30		$71.90		$70.60		$88.20
Additional data concerning these products are listed below.
		Products
		A		B		C		D
Grinding minutes per unit		3.00		4.00		3.50		2.60
Selling price per unit		$75.30		$92.70		$86.60		$103.40
Variable selling cost per unit		$1.40		$.40		$2.50		$.80
Monthly demand in units		3,200		3,200		2,200		2,400
The grinding machines are potentially the constraint in the production facility. A total of 52,900 minutes are available per month on these machines.
Direct labor is a variable cost in this company.
How many minutes of grinding machine time would be required to satisfy demand for all four products?

7,800

52,900

26,740

36,340

Reference no: EM13923748

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