Question
Darren Company produces three products with the following costs and selling prices: Product X Y Z Selling price per unit $ 60 $ 40 $
Darren Company produces three products with the following costs and selling prices:
| Product | |||||||||||
| X | Y | Z | |||||||||
| Selling price per unit | $ | 60 | $ | 40 | $ | 45 | |||||
| Variable costs per unit | 36 | 20 | 27 | ||||||||
| Contribution margin per unit | $ | 24 | $ | 20 | $ | 18 | |||||
| Direct labor hours per unit | 4 | 2 | 2 | ||||||||
| Machine hours per unit | 5 | 7 | 4 | ||||||||
If Darren has a limit of 20,400 direct labor hours but no limit on units sold or machine hours, then the ranking of the products from the most profitable to the least profitable use of the constrained resource is:
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The Corporate Culture Audit
Authors: Nigel Bristow, Sarah J. Sandberg
1st Edition
095597075X, 978-0955970757
