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Which product makes the least profitable use

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Reference no: EM132924000

Question - 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. Which product makes the LEAST profitable use of the milling machines?

a. Product A

b. Product B

c. Product C

d. Product D

Reference no: EM132924000

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