Reference: 09-14
Crane Company Makes Four Products in a Single

Multiple Choice

Reference: 09-14
Crane Company makes four products in a single facility. Data concerning these products appear below: $$\begin{array} { | l | l | l | l | l | } \hline & \text { Product } & \\\hline & A & B & C & D \\\hline \text { Selling price per unit } & \$ 35.30 & \$ 30.20 & \$ 20.80 & \$ 26.00 \\\hline \text { Variable manuf. cost per unit } & \$ 16.50 & \$ 15.80 & \$ 7.90 & \$ 8.50 \\\hline \text { Variable selling cost per unit } & \$ 3.80 & \$ 1.60 & \$ 1.90 & \$ 3.30 \\\hline \text { Milling machine minutes per unit } & 3.30 & 1.70 & 2.10 & 2.50 \\\hline \text { Monthly demand in units } & 4,000 & 1,000 & 3,000 & 1,000 \\\hline\end{array}$$ The milling machines are potentially the constraint in the production facility. A total of 22,600 minutes are available per month on these machines.
-Which product makes the LEAST profitable use of the milling machines

A) Product D.
B) Product B.
C) Product C.
D) Product A.