Assume that sufficient time is available


The constraint at Dalbey Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below:

                                            FE      MB         WP
Selling price per unit         $258.00 $363.80 $179.40
Variable cost per unit        $188.00 $271.88 $129.44
Minutes on the constraint    5.00     6.80         3.80
Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of this constrained resource? $13.15 per minute or $14.00 per minute or $49.96 per unit or $91.92 per unit.

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Accounting Basics: Assume that sufficient time is available
Reference No:- TGS0714621

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