Reference: 09-14
Crane Company Makes Four Products in a Single

question 26

Multiple Choice

Reference: 09-14
Crane Company makes four products in a single facility. Data concerning these products appear below: $$\begin{array} { | l | l | l | l | l | } \hline & \text { Product } &\\\hline & A & B & C & D \\\hline \text { Selling price per unit } & \$ 35.30 & \$ 30.20 & \$ 20.80 & \$ 26.00 \\\hline \text { Variable manuf. cost per unit } & \$ 16.50 & \$ 15.80 & \$ 7.90 & \$ 8.50 \\\hline \text { Variable selling cost per unit } & \$ 3.80 & \$ 1.60 & \$ 1.90 & \$ 3.30 \\\hline \text { Milling machine minutes per unit } & 3.30 & 1.70 & 2.10 & 2.50 \\\hline \text { Monthly demand in units } & 4,000 & 1,000 & 3,000 & 1,000 \\\hline\end{array}$$ The milling machines are potentially the 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)18,400 minutes.
• B)23,700 minutes.
• C)9,000 minutes.
• D)22,600 minutes.

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Definitions:

Concentric Lamellae

Circular layers of bone matrix in an osteon, surrounding a central canal in compact bone.

Central Canal

The cerebrospinal fluid-filled space that runs longitudinally through the length of the entire spinal cord.

External Ear

The outer parts of the ear, including the pinna and the ear canal, which collect and direct sound waves.

Elastic Cartilage

A type of cartilage that contains elastic fibers, providing flexibility and strength, found in the ear and epiglottis.