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

question 10

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Reference: 09-14
Crane Company makes four products in a single facility. Data concerning these products appear below:  Product ABCD Selling price per unit $35.30$30.20$20.80$26.00 Variable manuf. 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 demand in units 4,0001,0003,0001,000\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.
-Which product makes the MOST profitable use of the milling machines

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Definitions:

Organic Product

Chemical compounds produced by living organisms, typically characterized by their carbon-based structure.

Hydrophobic

Characteristic of molecules or parts of molecules that repel water or do not mix with water.

1-butanol

An organic compound, part of the alcohol family, with the formula C4H9OH, characterized by a four-carbon chain.

(2S,4R)-4-propylhexane-2-thiol

A specific chiral molecule indicated by its IUPAC name, highlighting its stereochemistry and functional groups.

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