The grinding machines are potentially the constraint in the production facility. A total of 89,600 minutes are available per month on these machines.Direct labor is a variable cost in this company.Up to how much should the company be willing to pay for one additional minute of grinding machine time if the company has made the best use of theexisting grinding machine capacity?Note: Round your intermediate calculations to 2 decimal places.Multiple ChoiceO$6.40$10.32$8.85$3.20 Bruce Corporation makes four products in a single facility. These products have the following unit product costs:ProductsDirect materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadUnit product costAdditional data concerning these products are listed below.ABC$15.30 $ 11.20 $12.0020.4028.4034.603.703.604.2035.80 27.6038.20$79.10 $ 77.80 $ 95.405.3027.50$ 68.50Multiple ChoiceA4.80$77.10$ 3.205,000D$11.6041.40ProductsCD4.405.30$88.40 $ 105.20$ 4.30$ 2.604,0003,000Grinding minutes per unitB6.30$ 94.50$ 2.20Selling price per unitVariable selling cost per unitMonthly demand in units5,000The grinding machines are potentially the constraint in the production facility. A total of 89,600 minutes are available per month on these machines.Direct labor is a variable cost in this company.Up to how much should the company be willing to pay for one additional minute of grinding machine time if the company has made the best use of theexisting grinding machine capacity?Note: Round your intermediate calculations to 2 decimal places.

Total variable cost = Direct materials + Direct labor + Variable manufacturing overhead + Variable…

Answered: The grinding machines are potentially…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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