FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question 8
Cranston Corporation makes four products in a single facility. Data concerning these products appear below:
Products
A
C
D
B
$42.30
Selling price per
unit
$50.00 $37.60 $ 33.50
$30.70 $ 21.00 $ 19.90
Variable manufacturing cost per unit $ 20.80
Variable selling cost per unit
$2.10 $1.00 $2.40
$2.70
3.30
Milling machine minutes per unit
4.10 2.60 1.30
Monthly demand in units
1,000 4,000 3,000 3,000
The milling machines are potentially the constraint in the production facility. A total of 28,200 minutes are available per month on these machines.
How many minutes of milling machine time would be required to satisfy demand for all four products?
23,500
28,200
O 11,000
O 31,400
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Transcribed Image Text:Question 8 Cranston Corporation makes four products in a single facility. Data concerning these products appear below: Products A C D B $42.30 Selling price per unit $50.00 $37.60 $ 33.50 $30.70 $ 21.00 $ 19.90 Variable manufacturing cost per unit $ 20.80 Variable selling cost per unit $2.10 $1.00 $2.40 $2.70 3.30 Milling machine minutes per unit 4.10 2.60 1.30 Monthly demand in units 1,000 4,000 3,000 3,000 The milling machines are potentially the constraint in the production facility. A total of 28,200 minutes are available per month on these machines. How many minutes of milling machine time would be required to satisfy demand for all four products? 23,500 28,200 O 11,000 O 31,400
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