Question
17...CraneCorporation produces three products, Standard, Deluxe and Superior, with the following characteristics: Standard Deluxe Superior Selling price per unit $21 $23 $22 Variable cost per
17...CraneCorporation produces three products, Standard, Deluxe and Superior, with the following characteristics:
Standard Deluxe Superior
Selling price per unit $21$23$22
Variable cost per unit131618
Contribution margin per unit$ 8$ 7$ 4
Machine hours per unit222
The company has only1820machine hours available each period. If demand exceeds the company's capacity, in what sequence should orders for the three products be filled to maximize the company's total contribution margin?
a...Deluxe first, Standard second, Superior third
b...Standard first, Superior second, Deluxe third
c...Standard first, Deluxe second, Superior third
d...Superior first, Standard second, Deluxe third
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