Cranston Corporation makes four products in a single facility. Data concerning t
ID: 2585615 • Letter: C
Question
Cranston Corporation makes four products in a single facility. Data concerning these products appear below: Products selling price per unit Variable manufacturing cost per unit Variable selling cost per unit Milling machine minutes per unit Monthly demand in units $42.30 $50.00 $37.60 $33.50 $20.80 $30.70 $21.00 $19.90 2.70 2.10 1.00 2.40 1.30 1,000 4,000 3,000 3,000 3.30 4.10 2.60 The milling machines are potentially the constraint in the production facility. A total of 28,200 minutes are available per month on these machines. Which product makes the MOST profitable use of the milling machines? (Round your intermediate calculations to 2 decimal places.) Multiple ChoiceExplanation / Answer
Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up Statementshowing Computations Paticulars 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 Contribution per unit= Sales price - VC per unit 18.80 17.20 15.60 11.20 Milling machine minutes per unit 3.30 4.10 2.60 1.30 Contribution per milling machine minute 5.70 4.20 6.00 8.62 Ranking 3.00 4.00 2.00 1.00 Product D makes the most profitable use of the milling machines