Tillison Corporation Makes Three Products That Use the Current Constraint

question 42

Multiple Choice

Tillison Corporation makes three products that use the current constraint which is a particular type of machine.Data concerning those products appear below: Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product.Up to how much should the company be willing to pay to acquire more of the constrained resource?

• A)$10.80 per minute
• B)$69.44 per unit
• C)$16.40 per minute
• D)$14.04 per unit

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Definitions:

Non-Monetary Assets

Assets that are not in the form of cash or cannot be easily converted to cash, such as property, plant, and equipment.

Proportionately Adjusted Income Statement

An income statement where the figures reflect the proportional share of joint ventures or associates in a company's earnings.

Contractual Agreement

A legally binding agreement between two or more parties outlining the terms and conditions of a business transaction.

Financial Statements

Summarized records of a company's financial activities, including the income statement, balance sheet, cash flow statement, and statement of changes in equity, which provide insights into its financial health.