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Assume a company makes four products (A, B, C, and D) in a single facility....

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Accounting

Assume a company makes four products (A, B, C, and D) in a single facility. Data concerning these products appear below:

Product A Product B Product C Product D
Selling price per unit $ 42.30 $ 50.00 $ 37.60 $ 33.50
Variable manufacturing cost per unit $ 20.80 $ 30.70 $ 21.00 $ 19.90
Variable selling cost per unit $ 2.70 $ 2.10 $ 1.00 $ 2.40
Milling machine minutes per unit 3.30 4.10 2.60 1.30
Monthly demand in units 1,000 4,000 3,000 3,000

The milling machines are the constraint in the production facility. A total of 14,000 minutes is available per month on these machines. The contribution margin per unit of the constraining resource for Product B is closest to:

Multiple Choice

$4.71.

$19.30.

$17.20.

$4.20.

Answer & Explanation Solved by verified expert
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