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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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