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Brook Corporation produces three productsX, Y, & Zwith the following characteristics: X Y Z Selling price per unit $20 100% $16 100% $20 100% Variable
Brook Corporation produces three productsX, Y, & Zwith the following characteristics:
X | Y | Z | ||||
Selling price per unit | $20 | 100% | $16 | 100% | $20 | 100% |
Variable cost per unit | 12 | 60% | 12 | 75% | 8 | 40% |
Contribution margin per unit | $8 | 40% | $4 | 25% | $12 | 60% |
Machine hours per unit | 5 | 3 | 4 |
The company has only a limited number of 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?
Multiple Choice
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Orders for X first, Z second, and Y third.
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Orders for Y only
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Orders for Z first, Y second and X third
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Orders for Z first, X second, and Y third.
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Orders for Y first, X second, and Z third.
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