Joan Company makes four products in a single facility. Data concerning these products appear below: Product A B C D Selling price per unit P28.20 P26.60 P20.40 P24.70 Variable manufacturing cost per unit P11.40 P 7.70 P 6.30 P 9.30 Variable selling cost per unit P 3.40 P 1.50 P 3.50 P 1.80 Milling machine minutes per unit 2.60 1.40 0.70 0.90 Monthly demand in units 1,000 3,000 4,000 1,000 The milling machines are potentially the constraint in the production facility. A total of 10,400 minutes are available per month on these machines. 9. Which product makes the LEAST profitable use of the milling machines? A) Product A B) Product B C) Product C D) Product D 10. Which product makes the MOST profitable use of the milling machines? A) Product A B) Product B C) Product C D) Product D 11. Up to how much should the company be willing to pay for one additional minute of milling machine time if the company has made the best use of the existing milling machine capacity? (Round off to the nearest whole cent.) A) P 10.60 B) P0.00 C) P 5.15 D) P 17.40
8 - 11 Joan Company makes four products in a single facility. Data concerning these products appear below:
Product
A B C D
Selling price per unit P28.20 P26.60 P20.40 P24.70
Variable
Variable selling cost per unit P 3.40 P 1.50 P 3.50 P 1.80
Milling machine minutes per unit 2.60 1.40 0.70 0.90
Monthly demand in units 1,000 3,000 4,000 1,000
The milling machines are potentially the constraint in the production facility. A total of 10,400 minutes are available per month on these machines.
9. Which product makes the LEAST profitable use of the milling machines?
A) Product A B) Product B C) Product C D) Product D
10. Which product makes the MOST profitable use of the milling machines?
A) Product A B) Product B C) Product C D) Product D
11. Up to how much should the company be willing to pay for one additional minute of milling machine time if the company has made the best use of the existing milling machine capacity? (Round off to the nearest whole cent.) A) P 10.60 B) P0.00 C) P 5.15 D) P 17.40
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