Question
Oriole Company produces earrings, bracelets, and necklaces that are in high demand. Following is information for each of these products: Earrings Bracelets Necklaces Selling price
Oriole Company produces earrings, bracelets, and necklaces that are in high demand. Following is information for each of these products:
Earrings | Bracelets | Necklaces | |
Selling price per item | $18.55 | $26.50 | $33.60 |
Variable cost per item | 14.90 | 22.00 | 26.70 |
Contribution margin per item | $3.65 | $4.50 | $6.90 |
Machine hours per item | 0.50 | 1.00 | 1.20 |
Oriole has 2000 machine hours available each month. Demand for each item exceeds Sienna's capacity to produce the item. In order to maximize the company's total contribution margin, in what sequence should Oriole fill orders for the three products?
Earrings first, then necklaces, then bracelets.
Bracelets first, then earrings, then necklaces.
Necklaces first, then bracelets, then earrings.
Necklaces first, then earrings, then bracelets.
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