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Manico Company produces three products-X, Y, & Z-with the following characteristics: X Y Z Selling price per unit $20 100 $16 100 $15 100 Variable

Manico Company produces three products-X, Y, & Z-with the following characteristics:

X Y Z
Selling price per unit $20 100 $16 100 $15 100
Variable cost per unit 12 60 12 75 6 40
Contribution margin per unit $8 40% $4 25% $9 60%
=== ==== === === === ====
Machine hours per unit 5 3 6

The company has only 2,000 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 Z first, X second, and Y third.

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

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

Orders for Z first and no orders for X or Y.

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