ABC Company produces three products, Standard, Deluxe and Superior, with the following characteristics: The company has only 1,500 machine hours available each period.If demand exceeds the company's capacity, in what sequence should orders for the three products be filled to maximize the company's total contribution margin?
A)Standard first, Deluxe second, Superior third
B)Deluxe first, Standard second, Superior third
C)Superior first, Standard second, Deluxe third
D)Standard first, Superior second, Deluxe third

Question

ABC Company produces three products, Standard, Deluxe and Superior, with the following characteristics:  The company has only 1,500 machine hours available each period.If demand exceeds the company's capacity, in what sequence should orders for the three products be filled to maximize the company's total contribution margin?
A)Standard first, Deluxe second, Superior third 
B)Deluxe first, Standard second, Superior third 
C)Superior first, Standard second, Deluxe third 
D)Standard first, Superior second, Deluxe third

Quizplus · Accepted Answer

The Answer of ABC Company produces three products, Standard, Deluxe and Superior, with the following characteristics:  The company has only 1,500 machine hours available each period.If demand exceeds the company's capacity, in what sequence should orders for the three products be filled to maximize the company's total contribution margin?
A)Standard first, Deluxe second, Superior third 
B)Deluxe first, Standard second, Superior third 
C)Superior first, Standard second, Deluxe third 
D)Standard first, Superior second, Deluxe third

ABC Company Produces Three Products, Standard, Deluxe and Superior, with the Following