Bertucci Corporation makes three products that use the current constraint whcih 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?
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 whcih 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?
A) $12.40 per minute 
B) $18.20 per minute 
C) $129.22 per unit 
D) $95.76 per unit

Quizplus · Accepted Answer

11ea7761_1617_4c04_81a5_9d3e9f0c54b4_TB2580_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