Cress Company makes four products in a single facility. Data concerning these products appear below:
A B C D
Selling price per unit $33.90 $24.80 $26.10 $29.80
Variable manufacturing cost per unit $13.30 $7.10 $9.40 $9.70
Variable selling cost per unit $1.20 $2.50 $1.30 $2.30
Milling machine minutes per unit 2.60 1.40 0.80 0.80
Monthly demand in units 2,000 2,000 2,000 3,000
The milling machines are potentially the constraint in the production facility. A total of 11,500 minutes are available per month on these machines. Which product makes the MOST profitable use of the milling machines?
1. Product A
2. Product B
3. Product C
4. Product D