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An automated turning machine is the current constraint at Naik Corporation. Thre

ID: 2587827 • Letter: A

Question

An automated turning machine is the current constraint at Naik Corporation. Three products use this constreined resource. Data concerning those products appear below KU OP Selling price per unit...104.89 $528.09 $558.03 Variable cost per unit . Minutes on the constraint.... $82.11 $429.78 $420.08 1.70 8.70 8.90 Rank the products in order of their current profitability from most profitable to least profitable. In which they should be emphasized othor words rank the products inthe onder in other words, rank the products in the order in O KUYY,OP O YY.OPKU O YY.KU,OP

Explanation / Answer

Hence the correct answer is YY, KU , OP

KU OP YY Selling Price Per Unit 104.89 528.09 558.03 Variable Cost Per Unit 82.11 429.78 420.08 Contribution Margin per Unit 22.78 98.31 137.95 Minutes 1.7 8.7 8.9 Contribution Margin per Minute 13.4 11.3 15.5 Ranking II III I
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