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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

  • Orders for X first, Z second, and Y third.

  • Orders for Y only

  • Orders for Z first, Y second and X third

  • Orders for Z first, X second, and Y third.

  • Orders for Y first, X second, and Z third.

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