Information regarding the selling prices and unit costs of three products is as follows: Product G F
Information regarding the selling prices and unit costs of three products is as follows: Product G F H Selling price $55 $35 $65 $ 40 $30 $ 45 Variable costs S 15 Fixed costs $4 12 10 4 Milling machine time (minutes) Fixed costs are applied to the products on the basis of direct labor hours. Demand for the three products exceeds the company's productive capacity. The milling machine is the constraint, with only 2,600 minutes of milling machine time available this week. Required: a. Given the milling machine constraint, what should the company focus on to make the production decision? b. Based on your answer to part (a), calculate that amount for each product. c. Which product should be emphasized? Contribution Margin per minute The production decision should be made by analyzing a the Based on your answer to part (a), calculate that amount b for each product Required: a. Given the milling machine constraint, what should the company focus on to make the produe b. Based on your answer to part (a), calculate that amount for each product. Which product should be emphasized? C. Contribution Margin per minute The production decision should be made by analyzing a. the Based on your answer to part (a), calculate that amount b for each product 1.50 Product F 2.50 Product G 5.00 Product H Product H c. Product that should be emphasized