Question
ABC Company produces three products: X, Y, and Z. Product X has a contribution margin of $40 and requires 2 hour of machine time. Product
ABC Company produces three products: X, Y, and Z. Product X has a contribution margin of $40 and requires 2 hour of machine time. Product Y has a contribution margin of $60 and requires 4 hours of machine time. Product Z has a contribution margin of $72 and requires 3 hours of machine time. If machine hours are considered scarce, in what product mix order should ABC Company schedule the production of Products X, Y, and Z for the available machine hours?
A) first X, then Y, then Z.
B) first Z, then X, then Y.
C) first Z, then Y, then X.
D)first Y, then Z, then X
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