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Delta, LTD makes three products (Alpha, Beta, and Gamma), all of which use a very rare ingredient called Omicron. Delta can purchase only 900 ounces

Delta, LTD makes three products (Alpha, Beta, and Gamma), all of which use a very rare ingredient called Omicron. Delta can purchase only 900 ounces of Omicron per month from its Greek source. Below is data for the three products:

Alpha Beta Gamma
Unit selling price $82 $70 $100
Unit variable costs 40 43 55
Unit contribution margin 42 27 45
Omicron (ounces per unit) 20 15 15

How should Delta allocate the 900 ounces of Omicron assuming it can sell unlimited quantities of all three produces?

Select one:

A. All 900 ounces should be allocated to Alpha

B. All 900 ounces should be allocated to Beta

C. All 900 ounces should be allocated to Gamma

D. None of the statements are correct

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