Answer:
Cranston Corporation
The total minutes of milling machine time required to satisfy demand for all four products = 31,400
Explanation:
a) Data and Calculations:
Products A B C D
Selling price per unit $ 42.30 $ 50.00 $ 37.60 $ 33.50
Variable manufacturing cost per unit $ 20.80 $ 30.70 $ 21.00 $ 19.90
Variable selling cost per unit $ 2.70 $ 2.10 $ 1.00 $ 2.40
Total variable costs $ 23.50 $ 32.80 $22.00 $22.30
Contribution margin per unit $18.80 $17.20 $15.60 $11.20
Milling machine minutes per unit 3.30 4.10 2.60 1.30
Monthly demand in units 1,000 4,000 3,000 3,000
Total minutes of milling machine time 3,300 16,400 7,800 3,900
Total minutes of milling machine time required to satisfy demand for all four products = 31,400 (3,300 + 16,400 + 7,800 + 3,900)
Total minutes available per month = 28,200
Shortfall minutes required per month = 3,200 (31,400 - 28,200)
