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Time on a machine is the current constraint for Your Company. Three products use this constrained resource. Data concerning those products appear below: 1 2
Time on a machine is the current constraint for Your Company. Three products use this constrained resource. Data concerning those products appear below:
1 | 2 | 3 | |
Demand in units | 10,000 | 20,000 | 5,000 |
Selling price per unit | $150 | $200 | $195 |
Contribution Margin Ratio | 70% | 65% | 56% |
Minutes of the constrained resource | 8 | 10 | 10 |
Your Company has a limit of 75,000 minutes of the constrained resource. What is the ranking of the products in order of their current profitability from most profitable to least profitable?
Group of answer choices
a 3, 1, 2
b 1, 3, 2
c 1, 2, 3
d 2, 1, 3
e 3, 2, 1
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