The constraint at Bulman Corporation is time on a particular machine.The company makes three products that use this machine.Data concerning those products appear below: Assume that sufficient time is available on the constrained machine 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)$28.31 per unit
B)$12.20 per minute
C)$14.90 per minute
D)$69.54 per unit

Question

The constraint at Bulman Corporation is time on a particular machine.The company makes three products that use this machine.Data concerning those products appear below:  Assume that sufficient time is available on the constrained machine 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)$28.31 per unit 
B)$12.20 per minute 
C)$14.90 per minute 
D)$69.54 per unit

Quizplus · Accepted Answer

11eaaee8_667e_4c26_933a_b15de806bd7a_TB5186_00 The company should be willing to pay up to $12.20 per minute to obtain more of the constrained resource since this is the value to the company of using this constrained resource to make more of product YO.By assumption,the other products will already have been produced up to deman

The Constraint at Bulman Corporation Is Time on a Particular