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Manico Company produces three productsX, Y, & Zwith the following characteristics: X Y Z Selling price per unit $20 100% $16 100% $15 100% Variable
Manico Company produces three productsX, Y, & Zwith 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, what would be the maximum amount per hour the company would be willing to pay or more machine time to produce more product Y?
a) 4.00
b) 3.00
c) 1.33
d) 0.75
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