Bertucci Corporation makes three products that use the current constraint which is a particular type of machine. Data concerning those products appear below: Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your intermediate calculations to 2 decimal places.)
A) $12.40 per minute
B) $18.20 per minute
C) $129.22 per unit
D) $95.76 per unit

Question

Bertucci Corporation makes three products that use the current constraint which is a particular type of machine. Data concerning those products appear below:  Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your intermediate calculations to 2 decimal places.)
A) $12.40 per minute 
B) $18.20 per minute 
C) $129.22 per unit 
D) $95.76 per unit

Quizplus · Accepted Answer

11eacbfc_c64a_8148_8ffe_2d627b28bdb3_TB7552_00 The company should be willing to pay up to the contribution margin per minute for the marginal job, which is $12.40 per minute for TC.

Bertucci Corporation Makes Three Products That Use the Current Constraint