Asked by Vukosi Ellon on Jul 14, 2024
Verified
Up to how much should the company be willing to pay for one additional minute of milling machine time if the company has made the best use of the existing milling machine capacity? (Round off to the nearest whole cent.)
A) $4.20
B) $11.20
C) $18.80
D) $0.00
Milling Machine
A machine tool used to shape solid materials by removing excess material through rotary cutters.
Existing Capacity
Current maximum level of output or production that a facility can achieve under normal conditions.
Additional Minute
Additional Minute refers to any extra time accounted for or needed beyond what was initially planned or scheduled, often in context to services or operations.
- Ascertain the maximum amount a corporation should consider offering to obtain additional amounts of a limited resource.
Verified Answer
JB
Jonterria BarrinoJul 21, 2024
Final Answer :
A
Explanation : 
The company should be willing to pay up to the contribution margin per minute for the marginal job, which is $4.20 per minute for Product B.
Reference: CH11-Ref21
Bertucci Corporation makes three products that use the current constraint whcih is a particular type of machine.Data concerning those products appear below:
The company should be willing to pay up to the contribution margin per minute for the marginal job, which is $4.20 per minute for Product B.Reference: CH11-Ref21
Bertucci Corporation makes three products that use the current constraint whcih is a particular type of machine.Data concerning those products appear below:
Learning Objectives
- Ascertain the maximum amount a corporation should consider offering to obtain additional amounts of a limited resource.