\\ Question Completion Status: points Ryan Corporation produces three products -

Question

Question Completion Status: points Ryan Corporation produces three products -X, Y, & Z with the following characteristics: Selling price per unt... $20 $16 100% $15 100% 40% 60% 100% 12 60% -12 75% - Contribution margin per unit. $8 40% Machine hours per unit . 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 $425% 9 company wants to maximize its total contribution margin? ? A. A orders for Z first, X second, and Y third orders for X first, Z second, and Y third C. orders for Y first, X second, and Z third

Explanation / Answer

Answer Option B. Orders for X first, Z second and Y third

Explanation

X Y Z Contribution margin per unit 8 4 9 Machine hours per unit 5 3 6 Contribution margin per hour 1.60 1.33 1.50 (8/5) (4/3) (9/6) Rank I III II

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