Question
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 Assume that the maximum number of units that can be sold is: 25 units of Alpha, 25 units of Beta, and 15 units of Gamma. How many ounces of Omicron will be allocated to each product?
Select one:
A. 115 ounces to Gamma, 510 ounces to Alpha, and 275 ounces to Delta
B. 225 ounces to Gamma, 175 ounces to Alpha, and 500 ounces to Beta
C. 225 ounces to Gamma, 500 ounces to Alpha, and 175 ounces to Beta
D. All 900 ounces will be allocated to Gamma
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