Question: Gingerbread Makers produces four products in a single facility. Data concerning these products appear below: Product ABCD Selling price per unit $35.30, $30.20, $20.80, $26.00

Gingerbread Makers produces four products in a single facility. Data concerning these products appear below:

ProductABCD

Selling price per unit $35.30, $30.20, $20.80, $26.00

Variable manuf. cost per unit$16.50, $15.80, $7.90, $8.50

Variable selling cost per unit$3.80, $1.60, $1.90, $3.30

Baking machine minutes per unit 3.30, 1.70, 2.10, 2.50

Monthly demand in units4,000 1,000 3,000 1,000

The baking machines are potentially the constraint in the production facility. A total of 22,600 minutes is available per month on these machines.

How many minutes of baking machine time would be required to satisfy demand for all four products?

Multiple Choice

  • 9,000 minutes.
  • 22,600 minutes.
  • 18,400 minutes.
  • 23,700 minutes.

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