Help Save & ExitSubs The constraint at Rauchwerger Corporation is time on a part

Question

Help Save & ExitSubs The constraint at Rauchwerger Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below Selling price per unit $335.08 $228.36 $199.11 $259.46 $173.28 $159.81 Minutes on the constraint 6.50 3.30 4.50 Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your intermediate calculations to 2 decimal places.) Nex

Explanation / Answer

Answer : $8.73.

WX KD FS

Selling price per unit $335.08 $228.36 $199.11

Variable cost per unit $259.46 $173.28 $159.81

Contribution margin per unit $75.62 $55.08 $39.30

Minutes on the constraint 6.50 3.30 4.50

Contribution margin per minute $11.63 $16.69 $8.73

Ranks II I III

The contribution margin per minute for the least profitable job is $8.73.

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