Winton Inc has 12,000 machine hours available each month.The following information on the company's four 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 W first,product X second,product Z third,and product Y last.
B)Product Z first,product W second,product X third,and product Y last.
C)Product X first,product W second,product Y third,and product Z last.
D)Product X first,product Z second,product Y third,and product W last.

Question

Quizplus · Accepted Answer

Product W has the highest contribution margin per machine hour, so it should be filled first. Product X has the second highest contribution margin per machine hour, so it should be filled second. Product Z has the third highest contribution margin per machine hour, so it should be filled third. Product Y has the lowest contribution margin per machine hour, so it should be filled last.

Winton Inc Has 12,000 Machine Hours Available Each Month