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The constraint at Bulman Corp. is time on a particular machine. The company makes three products that use the machine. Data appears below:
YO EG SSSelling Price per unit $342.57 $276.46 $116.28Variable cost per unit $273.03 $219.88 $ 87.97Minutes on constraint 5.70 4.60 1.90
Assume that sufficient time is available on the constrained machine 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?
$28.31 per unit, $12.20 per minute, $14.90 per minute, or $69.54 per unit
Horatio Ltd. uses job order costing to measure and track product costs. Horatio has determined that machine hours drive its manufacturing overhead costs. During the month of June, the following data were available for Product #80:
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