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Manico Corporation produces three products - X, Y, & Z - with the following characteristics: The company has only 2,000 machine-hours available each month. If
Manico Corporation produces three products - X, Y, & Z - with the following characteristics: 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? A. orders for Z first, X second, and Y third B. orders for X first, Z second, and Y third C. orders for Y first, X second, and Z third D. orders for Z first and no orders for X or Y Palinkas Cane Products, Inc., processes sugar cane in batches. The company buys a batch of sugar cane from farmers for $80 which is then crushed in the company's plant at a cost of $11. Two intermediate products, cane fiber and cane juice, emerge from the crushing process. The cane fiber can be sold as is for $22 processed further for $ 10 to make the end product industrial fiber that is sold for $30. The cane juice can be sold as is for $41 or processed further for $27 to make the end product molasses that is sold for $101. How much more profit (loss) does the company make by processing one batch of sugar cane into the end products industrial fiber and molasses? A. $(128) B. $3 C. $(28) D. $31 (Ignore income taxes in this problem). Baker Corporation is considering buying a new donut maker. This machine will replace an old donut maker that still has a useful life of 4 years. The new machine will cost $3, 500 a year to operate, as opposed to the old machine, which costs $3, 900 per year to operate. Also, because of increased capacity, an additional 10,000 donuts a year can be produced. The company makes a contribution margin of $0.15 per donut. The old machine can be sold for $6,000 and the new machine costs $28,000. The incremental annual net cash inflows provided by the new machine would be
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