Bruce Corporation Makes Four Products in a Single Facility

question 137

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.
-Up to how much should the company be willing to pay for one additional minute of grinding machine time if the company has made the best use of the existing grinding machine capacity? (Round off to the nearest whole cent.)

• A) $18.33
• B) $12.20
• C) $0.00
• D) $19.30

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Definitions:

Infants

Young babies or children, typically under one year of age, who are in the early stages of development.

Occupy

To fill or take up a space, position, or time.

Human Faces

The front part of the head, including the eyes, nose, mouth, and expression features, unique to each individual.

Schematic Faces

Simplified representations of faces used in psychological studies to understand facial recognition and emotional processing.