UTILIZATION OF A CONSTRAINED RESOURCE ABC Company produces three productsX, Y, & Zwith the following characteristics:

	X	Y	Z
Selling price per unit	$20	$16	$15
Variable cost per unit	12	$12	$6

Contribution margin per unit	$ 8	40%	$ 4	25%	$ 9	60%
Machine hours per unit	5		3		6

The company has only 2,000 machine-hours available each month. If demand exceeds the company's capacity, in what sequence should orders be filled if the company wants to maximize its total contribution margin?

		Orders for X first, Z second, and Y third.
		Orders for Z first, X second, and Y third.
		Orders for Y first, X second, and Z third.
		Orders for Z first and no orders for X or Y.