Lerner Inc has 6,600 machine hours available each month.The following information on the company's three products is available: If market demand exceeds the available capacity,in what sequence should orders be filled to maximize the company's profits?
A)Product X first,product Z second,and product Y third
B)Product Y first,product Z second,and product X third
C)Product Y first,product X second,and product Z third
D)Product Z first,product X second,and product Y third

Question

Quizplus · Accepted Answer

Product X has the highest contribution margin per machine hour, followed by Product Z and Product Y. Therefore, to maximize profits, orders should be filled in the sequence of Product X first, Product Z second, and Product Y third.

Lerner Inc Has 6,600 Machine Hours Available Each Month