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The following details relate to Hope Company that produces three products: Product A Product B Product C Selling price per unit 60 40 30 Variable
The following details relate to Hope Company that produces three products:
| Product A | Product B | Product C |
Selling price per unit | 60 | 40 | 30 |
Variable costs per unit | 36 | 30 | 12 |
A particular machine is the bottleneck. On that machine, 3 machine hours are required to produce each unit of Product A, 1 hour is required to produce each unit of Product B, and 2 hours are required to produce each unit of Product C.
Required:
Rank the products from the most profitable to the least profitable use of the constrained resource (bottleneck).
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