The milling machines are potentially the constraint in the

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Reference no: EM13577447

Cress Company makes four products in a single facility. Data concerning these products appear below:

	Products
	A	B	C	D
Selling price per unit	$53.9	$44.8	$46.1	$54.8
Variable manufacturing cost per unit	$16.3	$10.1	$12.4	$11.7
Variable selling cost per unit	$3.2	$4.5	$3.3	$5.3
Milling machine minutes per unit	5.6	4.4	2.8	2.8
Monthly demand in units	3,000	3,000	3,000	4,000

The milling machines are potentially the constraint in the production facility. A total of 36,500 minutes are available per month on these machines.
Up to how much should the company be willing to pay for one additional minute of milling machine time if the company has made the best use of the existing milling machine capacity? (Do not round your intermediate calculations. Round off to the nearest whole cent.)

Reference no: EM13577447

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