Brewn Corporation makes four products in a single faciliay These products have t

Question

Brewn Corporation makes four products in a single faciliay These products have the following unit product 710 700 $7270 $6810 $58.10353 80 750 $2140 Unit product cost Additional data concerning these products are listed below 100 S4 The grinding machines are potentialy the constraint in the production facility A total of 10,500 minutes are evalable per month on these machines Direct labor is a variable cost in this company Which product makes the MOST prontable use of the grinding machines? O Product B O Product A O Product D Product C O Type here to search

Explanation / Answer

A B C D Selling price per unit $    88.20 $    80.60 $    77.40 $    72.10 unit product cost $    72.70 $    68.10 $    58.10 $    53.80 Selling cost $       3.25 $       3.95 $       4.70 $       5.40 Contribution $    12.25 $       8.55 $    14.60 $    12.90 Grinding minutes 2.4 1.45 1 1.3 Contribution per minute $       5.10 $       5.90 $    14.60 $       9.92 Product C should be made as it is giving highest contribution per minute from use of grinding machine.

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