Satisfy demand for the two existing products

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Daisley Products Inc. makes two products--B17U and R94X. Product B17U's selling price is $160.00 and its unit variable cost is $86.00. Product R94X's selling price is $288.00 and its unit variable cost is $164.80. The monthly demand is 1,390 units for product B17U and 590 units for R94X. The constrained resource is a particular machine that is available for 11,300 minutes each month. Each unit of product B17U requires 4 minutes on this machine and each unit of product R94X requires 14 minutes on this machine.

Up to how much should the company be willing to pay to obtain enough of the constrained resource to satisfy demand for the two existing products?

Reference no: EM13787730

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