Marley Corporation makes three products (X, Y, & Z) with the following characteristics: ...
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Accounting
Marley Corporation makes three products (X, Y, & Z) with the following characteristics:
| Products | |||
|---|---|---|---|
| X | Y | Z | |
| Selling price per unit | $ 10 | $ 15 | $ 20 |
| Variable cost per unit | $ 6 | $ 10 | $ 10 |
| Machine hours per unit | 2 | 4 | 10 |
The company has a capacity of 2,000 machine hours, but there is virtually unlimited demand for each product. In order to maximize total contribution margin, how many units of each product should the company produce?
Multiple Choice
2,000 units of X, 500 units of Y, and 200 units of Z
0 units of X, 0 units of Y, and 200 units of Z
0 units of X, 500 units of Y, and 0 units of Z
1,000 units of X, 0 units of Y, and 0 units of Z
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