Question
The constraint at Johngrass Corporation is time on a particular machine. The company makes three products...
The constraint at
Johngrass Corporation is time on a particular machine. The company
makes three products that use this machine. Data concerning those
products appear below:
| VT | UV | LQ | |
| Selling price per unit | $335.07 | $228.35 | $199.10 |
| Variable cost per unit | $259.48 | $173.30 | $159.83 |
| Minutes on the constraint | 6.40 | 3.20 | 4.40 |
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? (Round your intermediate calculations and final answer to 2 decimal places.)
a. $8.93 per minute
b. $39.27 per minute
c. $75.59 per minute
d. $17.20 per minute
Homework Answers
Answer #1
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