Manitoba Dairy produces three products: BIZ, CAC and DEC. Unit data for the three products is as follows:

	BIZ	CAC	DEC
Selling price	$76	$90	$119
Direct materials (variable)	$20	$30	$35
Direct labour (variable)	$16	$24	$28
Fixed costs	$10	$10	$10
Profit	$30	$26	$46

All three products use the same direct material, Zovic, which costs $5 per kilogram (kg) and a maximum of 2,200 kilograms is available each month. The demand for all three products far exceeds the direct material available to produce them. Due to customer needs, a minimum of 100 units of each product must be produced each month. Fixed costs are capacity costs and cannot change in the short run. The $10 per unit fixed costs are calculated based on the minimum production of the three products together (this is, 100 units per product times 3 = 300 units). There is 450 units capacity each month.

Q4. Given the constraint represented by the input material Zovic, the ranking of the three products is in the following order:

Question 4 options:

	DEC, CAC, BIZ
	CAC, DEC, BIZ
	BIZ, DEC, CAC
	CAC, BIZ, DEC
	BIZ, CAC, DEC