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Dinno Corp makes three products; X, Y and Z. The bottleneck (constraint) in the production process is time required on Dinnos cutting machine, which has

Dinno Corp makes three products; X, Y and Z. The bottleneck (constraint) in the production process is time required on Dinnos cutting machine, which has only 700 hours available each month. Rank the products in the order in which Dinno should focus in order to maximize profits under its constrained resource.

X Y Z
Sales price per unit $20 $25 $16
Variable costs per unit 8 20 10
Hours of cutting machine time required per unit 1.5 1.0 0.5
a.

Z, Y, X

b.

X, Y, Z

c.

Y, X, Z

d.

Z, X, Y

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