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Sheridan Company produces earrings, bracelets, and necklaces that are in high demand. Following is information for each of these products: Earrings Bracelets Necklaces Selling price

Sheridan 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

$17.65 $27.50 $34.60

Variable cost per item

14.00 25.00 29.20

Contribution margin per item

$3.65

$2.50

$5.40

Machine hours per item

0.50 1.00 1.20

Sheridan has 2000 machine hours available each month. Demand for each item exceeds Siennas capacity to produce the item. In order to maximize the companys total contribution margin, in what sequence should Sheridan fill orders for the three products?

Necklaces first, then bracelets, then earrings.

Bracelets first, then earrings, then necklaces.

Necklaces first, then earrings, then bracelets.

Earrings first, then necklaces, then bracelets.

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