Question
A Company produces three productsX, Y, & Zwith the following characteristics: X Y Z ___________ ______________ ________________ Selling price per unit $20 100% $16 100%
A Company produces three productsX, Y, & Zwith the following characteristics:
X Y Z
___________ ______________ ________________
Selling price per unit $20 100% $16 100% $15 100%
variable price per unit 12 60% 12 75% 6 40%
______________ ______________ ________________
contribution marigin per unit $8 40% $4 25% $9 60%
_____ _____ ____
machine hours per unit 5 3 6
The company has only 2,000 machine-hours available each month. If demand exceeds the company's capacity, in what sequence should orders be filled if the company wants to maximize its total contribution margin?
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