Reference no: EM132603532
Crane Company makes four products in a single facility. Data concerning these products appear below:
Product A
Selling Price per Unit = $35.30
Variable Manufacturing Cost per Unit =$16.50
Variable Selling Cost per Unit =$3.80
Milling Machine Minutes per Unit = 3.30
Monthly Demand in Units = 4,000
Product B
Selling Price per Unit =$30,20
Variable Manufacturing Cost per Unit=$15.80
Variable Selling Cost per Unit =$1.60
Milling Machine Minutes per Unit =1.70
Monthly Demand in Units =1,000
Product C
Selling Price per Unit = $20,80
Variable Manufacturing Cost per Unit =$7.90
Variable Selling Cost per Unit =$1.90
Milling Machine Minutes per Unit = 2.10
Monthly Demand in Units =3,000
Product D
Selling Price per Unit= $26.00
Variable Manufacturing Cost per Unit =$8.50
Variable Selling Cost per Unit =$3.30
Milling Machine Minutes per Unit =2.50
Monthly Demand in Units =1,000
The milling machines are potentially a constraint in the production facility. A total of 22,600 minutes are available per month on these machines.
Question 1: How many minutes of milling machine time would be required to satisfy demand for all four products?
A. 9,000 minutes.
B. 18,400 minutes.
C. 22,600 minutes.
D. 23,700 minutes
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