Cranston Corporation Makes Four Products in a Single Facility

question 121

Multiple Choice

Cranston Corporation makes four products in a single facility. Data concerning these products appear below:
The milling machines are potentially the constraint in the production facility. A total of 28,200 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) 11,000
• B) 28,200
• C) 23,500
• D) 31,400

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Definitions:

Income Statement

A financial statement that shows a company’s revenue and expenses over a specified period of time, resulting in net profit or loss.

Liability

Financial obligations or debts owed by a business to external parties, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Goods

Tangible products or merchandise that are manufactured, bought, and sold in commerce.

Services

The action of helping or doing work for someone, often producing intangible benefits.