Brown Corporation makes four products in a single facility. These products have the following unit product costs:

Additional data concerning these products are listed below.

The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available per month on these machines.
Direct labor is a variable cost in this company.

-How many minutes of grinding machine time would be required to satisfy demand for all four products?
A)10,500
B)10,700
C)11,000
D)10,800

Question

Brown Corporation makes four products in a single facility. These products have the following unit product costs:

Additional data concerning these products are listed below.

The grinding machines are potentially the constraint in the production facility. A total of 10,500 minutes are available per month on these machines.
Direct labor is a variable cost in this company.

-How many minutes of grinding machine time would be required to satisfy demand for all four products?
A)10,500 
B)10,700 
C)11,000 
D)10,800

Quizplus · Accepted Answer

The correct answer is 10,800 minutes, which is the total grinding machine time required to meet the demand for all four products.

Brown Corporation Makes Four Products in a Single Facility