The constraint at Rauchwerger Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below: WX KD FS Selling price per unit Variable cost per unit $ 335.20 $ 259.22 $ 228.48 $ 173.04 $ 199.23 $ 159.57 Minutes on the constraint 7.70 4.50 5.70 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? (Round your intermediate calculations to 2 decimal places.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The constraint at Rauchwerger Corporation is time on a particular machine. The company makes three products
that use this machine. Data concerning those products appear below:
WX
KD
FS
Selling price per unit
Variable cost per unit
$ 335.20
$ 259.22
$ 228.48
$ 173.04
$ 199.23
$ 159.57
Minutes on the constraint
7.70
4.50
5.70
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?
(Round your intermediate calculations to 2 decimal places.)
Transcribed Image Text:The constraint at Rauchwerger Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below: WX KD FS Selling price per unit Variable cost per unit $ 335.20 $ 259.22 $ 228.48 $ 173.04 $ 199.23 $ 159.57 Minutes on the constraint 7.70 4.50 5.70 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? (Round your intermediate calculations to 2 decimal places.)
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