The constraint at Bonavita Corporation is time on particular machine. The compan

ID: 2560763 • Letter: T

Question

The constraint at Bonavita Corporation is time on particular machine. The company makes three products that use this machine. Data concerning those products appear below. Pw Selling price per unit Vorlable cost per unit Minutes on the constroint $23900 34480 $160.40 S 168.00 251.88 109.44 3.90 4.30 6.10 Assume that sufficient time is available on the constrained machine to satisfy demand for all but the leost profitable product. Up to how much should the company be willing to pay to acquire more of this constrained resource? (Round your intermediate calculations and final answer to 2 decimal places.) O $50.96 cost per unit $13 07 cost per unit $92.92 cost per unit O $16.51 cost per unit

Explanation / Answer

Answer : B)$13.70 cost per unit

particulars

selling price per unit

$239.00

$344.80

$160.40

variable cost per unit

$168.00

$251.88

$109.44

contribution per unit (selling price-variable cost)= (A)

$71.00

$92.92

$50.96

Amount of the constrained resource required to produce one unit (B)

$4.30

$6.10

$3.90

Contribution margin per unit of the constrained resource (A)/(B)=

$16.51

$15.23

$13.07

ranks

The company should be willing to pay up to $13.70 per minute to produce more PW