Question
The Madison Corporation produces three products with the following unit costs and unit selling prices and hours of resource used per unit: Product A B
The Madison Corporation produces three products with the following unit costs and unit selling prices and hours of resource used per unit:
| Product | A | B | C |
| Selling price | $16 | $21 | $21 |
| Variable Cost | $ 7 | $11 | $13 |
| Contribution Margin | $ 9 | $10 | $ 8 |
| Direct labor hours | 1.0 | 1.5 | 2.0 |
| Machine hours | 4.5 | 2.0 | 2.5 |
If machine-hours is Madison's production constraint, then the ranking of the products from the most profitable to the least profitable use of the constrained resource is:
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Gleim CIA Review Part 3 Internal Audit Knowledge Elements
Authors: Irvin N. Gleim
2018 Edition
1618541153, 978-1618541154
