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

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

X Y Z

Selling price per unit......... $20 $16 $15

Variable cost per unit........ 12 12 6

Contribution margin per unit.. $8 $4 $9

Machine hours per unit.... 5 3 9

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 X first, Y second, and Z 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
E. None of the above

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