Crane Company Makes Four Products in a Single Facility $\quad$

question 98

Multiple Choice

Crane Company makes four products in a single facility. Data concerning these products appear below:

$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Product }$
$\begin{array}{|l|r|r|r|r|}\hline & \text { A } & \text { B } & \text { C } & \text { D } \\\hline \text { Selling Price per Unit } & \$ 35.30 & \$ 30.20 & \$ 20.80 & \$ 26.00 \\\hline \text { Variable Manufacturing Cost per Unit } & \$ 16.50 & \$ 15.80 & \$ 7.90 & \$ 8.50 \\\hline \text { Variable Selling Cost per Unit } & \$ 3.80 & \$ 1.60 & \$ 1.90 & \$ 3.30 \\\hline \text { Milling Machine Minutes per Unit } & 3.30 & 1.70 & 2.10 & 2.50 \\\hline \text { Monthly Deman in Units } & 4,000 & 1,000 & 3,000 & 1,000 \\\hline\end{array}$


The milling machines are potentially a 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) 9,000 minutes.
• B) 18,400 minutes.
• C) 22,600 minutes.
• D) 23,700 minutes.

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Definitions:

Yield to Call

The return an investor would receive if a callable bond is held until the issuer exercises their option to redeem it before its maturity date.

Current Yield

The annual interest payment of a bond divided by its current market price, used to compare the return on investment of different bonds.

Coupon Bond

A debt security that pays the holder a fixed interest rate (the coupon) periodically until maturity, at which point the principal is repaid.

Basis Point

A unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument, equal to 1/100th of 1%.