Bertucci Corporation makes three products that use the current constraint which is a particular type of machine. Data concerning those products appear below: TCGLNGSelling price per unit$ 494.40$ 449.43$ 469.68Variable cost per unit$ 395.20$ 320.21$ 373.92Minutes on the constraint8.007.107.60Assume that sufficient constraint time is available 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 the constrained resource? (Round your intermediate calculations to 2 decimal places.)

Contribution margin is the excess of sales over the variable cost. the higher the contribution…

Answered: Bertucci Corporation makes three…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bertucci Corporation makes three products that use the current constraint which is a particular type of machine. Data concerning those products appear below:

	TC	GL	NG
Selling price per unit	$ 494.40	$ 449.43	$ 469.68
Variable cost per unit	$ 395.20	$ 320.21	$ 373.92
Minutes on the constraint	8.00	7.10	7.60

Assume that sufficient constraint time is available 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 the constrained resource? (Round your intermediate calculations to 2 decimal places.)

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