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A company makes four products that have the following characteristics: Product A sells for $70 but needs $20 of materials and $15 of labor to
A company makes four products that have the following characteristics: Product A sells for $70 but needs $20 of materials and $15 of labor to produce; Product B sells for $55 but needs $25 of materials and $10 of labor to produce; Product C sells for $80 but needs $35 of materials and $15 of labor to produce; Product D sells for $75 but needs $35 of materials and $15 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table. Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 100 units per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. Use the information in Table 6.1. Using the traditional method, which product should be scheduled first? Select one: A. Product A B. Product B C. Product C D. Product D
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