Question
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?
Question 8 options:
Orders for Z first and no orders for X or Y. | |
Orders for Y first, X second, and Z third. | |
Orders for X first, Z second, and Y third. | |
Orders for Z first, X second, and Y third. |
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