Bruce Corporation Makes Four Products in a Single Facility

question 45

Multiple Choice

Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Additional data concerning these products are listed below.
The grinding machines are potentially the constraint in the production facility. A total of 9,000 minutes are available per month on these machines.Direct labor is a variable cost in this company.How many minutes of grinding machine time would be required to satisfy demand for all four products?

• A) 10,800
• B) 9,800
• C) 10,500
• D) 12,000

---

Definitions:

Lower Prices

A strategy or condition where the cost of goods or services is reduced to attract customers or gain a competitive edge in the market.

Stored-value Money

A type of electronic money that is stored on a card or a digital wallet, representing a claim on a predefined amount of currency.

Gift Cards

Prepaid stored-value money cards issued by a retailer or bank, used as an alternative to cash for purchases within a particular store or related businesses.

Electronic Checks

Electronic checks, or e-checks, are a form of digital payment where money is electronically withdrawn from the payer's checking account, transferred over the ACH network, and deposited into the payee's account.