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The constraint at Bulman Corp. is time on a particular machine. The company makes three products that use the machine. Data appears below:

YO EG SS
Selling Price per unit $342.57 $276.46 $116.28
Variable cost per unit $273.03 $219.88 $ 87.97
Minutes on constraint 5.70 4.60 1.90

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 the constrained resource?

$28.31 per unit, $12.20 per minute, $14.90 per minute, or $69.54 per unit

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Category:- Accounting Basics
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