Up to how much should the company be willing to pay for one additional hour of milling machine time if the company has made the best use of the existing milling machine capacity?**Craves Company** makes four products in a single facility. Data concerning these products appear below:| | Product A | Product B | Product C | Product D ||-----------------------|-----------|-----------|-----------|-----------|| Selling price per unit| P28.20 | P26.60 | P20.40 | P24.70 || Variable manufacturing cost per unit | P11.40 | P7.70 | P6.30 | P9.30 || Variable selling cost per unit | P3.40 | P1.50 | P3.50 | P1.80 || Milling machine minutes per unit | 2.60 | 1.40 | 0.70 | 0.90 || Monthly demand in units | 1,000 | 3,000 | 4,000 | 1,000 |The milling machines are potentially the constraint in the production facility. A total of 10,400 minutes are available per month on these machines.Possible Answers:- P10.60- P0.00- P5.15- P17.40The table shows data for four products, including selling prices, variable manufacturing and selling costs, milling machine time per unit, and monthly demand. The question involves determining the maximum price the company should pay for additional milling machine time based on the effective utilization of existing capacity.

Total no. of hours required for production = 1000*2.60+3000-1.40+4000*.07+1000*.09…

Up to how much should the company be willing to pay for one additional hour of milling machine time if the company has made the best use of the existing milling machine capacity? Craves Company makes four products in a single facility. Data concerming these products appear below: Product A B D. Selling price per unit Variable manufacturing cost per unit Variable selling cost per unit |Milling machine minutes per unit |Monthly demand in units P28.20 P26.60 P20.40 P24.70 P11.40 P7.70 P6.30 P9.30 Р3.40 P1.50 P3.50 P1.80 2.60 1.40 0.70 0.90 1,000 3,000 4,000 1,000 The milling machines are potentially the constraint in the production facility. A total of 10,400 minutes are available per month on these machines. O P10.60 O PO.00 O P5.15 O P17.40

Up to how much should the company be willing to pay for one additional hour of milling machine time if the company has made the best use of the existing milling machine capacity? Craves Company makes four products in a single facility. Data concerming these products appear below: Product A B D. Selling price per unit Variable manufacturing cost per unit Variable selling cost per unit |Milling machine minutes per unit |Monthly demand in units P28.20 P26.60 P20.40 P24.70 P11.40 P7.70 P6.30 P9.30 Р3.40 P1.50 P3.50 P1.80 2.60 1.40 0.70 0.90 1,000 3,000 4,000 1,000 The milling machines are potentially the constraint in the production facility. A total of 10,400 minutes are available per month on these machines. O P10.60 O PO.00 O P5.15 O P17.40

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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