Question

Bertucci Corporation makes three products that use the current constraint which is a particular type of machine. Data concerning those products appear below:
TC GL NG
Selling price per unit $ 494.40 $ 449.43 $ 469.68
Variable cost per unit $ 395.20 $ 320.21 $ 373.92
Minutes on the constraint 8.00 7.10 7.60
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. $12.40 per minute
b. $18.20 per minute
c. $129.22 per unit
d. $95.76 per unit

Answer 1

Answer:

M

Explanation:

Answer 2

Answer:

Bertucci Corporation

The amount the company should be willing to pay to acquire more of the constrained resource per minute is:

a. $12.40 per minute

Explanation:

a) Data and Calculations:

                                             TC             GL                NG

Selling price per unit       $ 494.40   $ 449.43     $ 469.68

Variable cost per unit     $ 395.20    $ 320.21     $ 373.92

Contribution per unit        $99.20      $129.22       $95.76

Minutes on the constraint     8.00             7.10            7.60

Contribution per minutes  $12.40        $18.20        $12.60