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Fahringer Corporation makes three products that use compound W, the current cons

ID: 2533624 • Letter: F

Question

Fahringer Corporation makes three products that use compound W, the current constrained resource. Data concerning those products appear below:



Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. (Round your intermediate calculations to 2 decimal places.)

QR,XS,BJ

XS,BJ,QR

QR,BJ,XS

BJ,QR,XS

Fahringer Corporation makes three products that use compound W, the current constrained resource. Data concerning those products appear below:

Explanation / Answer

Contribution margin per contstrained :

so answer is c) QR,BJ,XS

BJ XS QR Selling price per unit 105.01 528.21 558.15 Variable cost per unit 81.99 429.66 419.96 Contribution margin per unit 23.02 98.55 138.19 Centiliters of compound W 2 9.9 10.10 Contribution margin per constrained 11.51 9.95 13.68