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Morgan Inc has 5,400 machine hours available each month. The following information on the company's three products is available: Product 1 Product 2 Product 3
Morgan Inc has 5,400 machine hours available each month. The following information on the company's three products is available:
Product 1 | Product 2 | Product 3 | |||||||||
Contribution margin per unit | $ | 15.00 | $ | 18.00 | $ | 7.50 | |||||
Machine hours per unit | 3 | 2 | 1 | ||||||||
If market demand exceeds the available capacity, in what sequence should orders be filled to maximize the company's profits? a. Product 3 first, product 2 second, and product 1 third. b. Product 2 first, product 3 second, and product 1 third. c. Product 3 first, product 1 second, and product 2 third. d. Product 1 first, product 2 second, and product 3 third. |
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