Marley Corporation makes three products (X, Y, & Z) with the following characteristics: The company has a capacity of 2,000 machine hours, but there is virtually unlimited demand for each product. In order to maximize total contribution margin, how many units of each product should the company produce?
A) 2,000 units of X, 500 units of Y, and 200 units of Z
B) 0 units of X, 0 units of Y, and 200 units of Z
C) 0 units of X, 500 units of Y, and 0 units of Z
D) 1,000 units of X, 0 units of Y, and 0 units of Z

Question

Marley Corporation makes three products (X, Y, & Z) with the following characteristics:  The company has a capacity of 2,000 machine hours, but there is virtually unlimited demand for each product. In order to maximize total contribution margin, how many units of each product should the company produce?
A) 2,000 units of X, 500 units of Y, and 200 units of Z 
B) 0 units of X, 0 units of Y, and 200 units of Z 
C) 0 units of X, 500 units of Y, and 0 units of Z 
D) 1,000 units of X, 0 units of Y, and 0 units of Z

Quizplus · Accepted Answer

The Answer of Marley Corporation makes three products (X, Y, & Z) with the following characteristics:  The company has a capacity of 2,000 machine hours, but there is virtually unlimited demand for each product. In order to maximize total contribution margin, how many units of each product should the company produce?
A) 2,000 units of X, 500 units of Y, and 200 units of Z 
B) 0 units of X, 0 units of Y, and 200 units of Z 
C) 0 units of X, 500 units of Y, and 0 units of Z 
D) 1,000 units of X, 0 units of Y, and 0 units of Z

Marley Corporation Makes Three Products (X, Y, & Z) with the Following