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Crane Company Makes Four Products in a Single Facility \quad

Question 66

Multiple Choice

Crane Company makes four products in a single facility. Data concerning these products appear below:

\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad  Product \text { Product }
 A  B  C  D  Selling Price per Unit $35.30$30.20$20.80$26.00 Variable Manufacturing Cost per Unit $16.50$15.80$7.90$8.50 Variable Selling Cost per Unit $3.80$1.60$1.90$3.30 Milling Machine Minutes per Unit 3.301.702.102.50 Monthly Deman in Units 4,0001,0003,0001,000\begin{array}{|l|r|r|r|r|}\hline & \text { A } & \text { B } & \text { C } & \text { D } \\\hline \text { Selling Price per Unit } & \$ 35.30 & \$ 30.20 & \$ 20.80 & \$ 26.00 \\\hline \text { Variable Manufacturing Cost per Unit } & \$ 16.50 & \$ 15.80 & \$ 7.90 & \$ 8.50 \\\hline \text { Variable Selling Cost per Unit } & \$ 3.80 & \$ 1.60 & \$ 1.90 & \$ 3.30 \\\hline \text { Milling Machine Minutes per Unit } & 3.30 & 1.70 & 2.10 & 2.50 \\\hline \text { Monthly Deman in Units } & 4,000 & 1,000 & 3,000 & 1,000 \\\hline\end{array}


The milling machines are potentially a constraint in the production facility. A total of 22,600 minutes are available per month on these machines.
-How many minutes of milling machine time would be required to satisfy demand for all four products?


A) 9,000 minutes.
B) 18,400 minutes.
C) 22,600 minutes.
D) 23,700 minutes.

Correct Answer:

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