Manico Corporation produces three products - X, Y, & Z - with the following characteristics:...
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Manico Corporation produces three products - X, Y, & Z - with the following characteristics:
| X | Y | Z | ||||
| Selling price per unit | $20 | 100% | $16 | 100% | $15 | 100% |
| Variable cost per unit | 12 | 60% | 12 | 75% | 6 | 40% |
| 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 Z first and no orders for X or Y
orders for Y first, X second, and Z third
orders for Z first, X second, and Y third
orders for X first, Z second, and Y third
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