Bacon Company makes four products in a single facility. These products have the following unit product costs: Products A B C D Direct materials$14.80 $10.70 $11.50 $11.10 Direct labor 19.90 27.90 34.10 40.90 Variable manufacturing overhead 4.80 3.20 3.10 3.70 Fixed manufacturing overhead 27.00 35.30 27.10 37.70 Unit product cost$66.50 $77.10 $75.80 $93.40 Additional data concerning these products are listed below. Products A B C D Grinding minutes per unit 3.80 5.30 4.30 3.40 Selling price per unit$76.60 $94.00 $87.90 $104.70 Variable selling cost per unit$2.70 $1.70 $3.80 $2.10 Monthly demand in units 4,200 4,200 3,200 2,200 The grinding machines are the constraint in the production facility. A total of 54,600 minutes is available per month on these machines. Direct labor is a variable cost in this company. Which product makes the LEAST profitable use of the grinding machines?
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Bacon Company makes four products in a single facility. These products have the following unit produ...
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