Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products ABCDDirect materials$19.90$15.20$20.80$23.20Direct labor 12.20 8.70 10.50 7.40Variable manufacturing overhead 1.60 2.10 2.00 2.10Fixed manufacturing overhead? 10.80? 11.90? 8.80? 10.70Unit product cost$44.50$37.90$42.10$43.40Additional data concerning these products are listed below. Products ABCDGrinding minutes per unit 1.20 0.70 0.60 0.60Selling price per unit$59.30$51.70$59.50$55.60Variable selling cost per unit$3.60$1.50$2.20$3.60Monthly demand in units 4,000 2,000 4,000 2,000The grinding machines are potentially the constraint in the production facility. A total of 9,000 minutes are available per month on these machines.Direct
labor is a variable cost in this company.Which product makes the MOST profitable use of the grinding machines? (Round your intermediate calculations to 2 decimal places.)
A. Product A
B. Product B
C. Product C
D. Product D
Answer: C
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