Bruce Corporation Makes Four Products in a Single Facility

question 83

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 9,800 minutes are available per month on these machines.
Direct labor is a variable cost in this company.
-Which product makes the MOST profitable use of the grinding machines?

• A) Product A
• B) Product B
• C) Product C
• D) Product D

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Definitions:

Guidelines

a set of recommendations or instructions designed to advise or guide actions in specific situations.

National Institutes of Health

A part of the U.S. Department of Health and Human Services and the primary agency of the United States government responsible for biomedical and public health research.

Laboratory

A controlled environment where scientific research, experiments, and measurement are conducted by specialists using specific equipment and techniques.

Cholera

An infectious disease causing severe diarrhea and dehydration, usually spread through contaminated water.