Use the following information for Question : Four products are manufactured in a labour-intensive process by XYZ: $$\begin{array} { | l | r | r | r | r | }
\hline & \text { Alpha } & \text { Beta } & \text { Gamma } & \text { Delta } \
\hline \text { Selling price per unit } & 100 & 150 & 90 & 200 \
\hline \text { Variable costs per unit } & 45 & 85 & 30 & 110 \
\hline \text { Labour hours } & 2 & 4 & 3 & 4 \
\hline
\end{array}$$
-Assuming an overall capacity constraint, what is the ranking order of products for XYZ to produce to maximise its profitability:
A) Beta, Gamma, Alpha, Delta
B) Alpha, Delta, Gamma, Beta
C) Gamma, Alpha, Delta, Beta
D) Delta, Beta, Gamma, Alpha

Question

Use the following information for Question : Four products are manufactured in a labour-intensive process by XYZ: $$\begin{array} { | l | r | r | r | r | } 
\hline & \text { Alpha } & \text { Beta } & \text { Gamma } & \text { Delta } \
\hline \text { Selling price per unit } & 100 & 150 & 90 & 200 \
\hline \text { Variable costs per unit } & 45 & 85 & 30 & 110 \
\hline \text { Labour hours } & 2 & 4 & 3 & 4 \
\hline
\end{array}$$
-Assuming an overall capacity constraint, what is the ranking order of products for XYZ to produce to maximise its profitability:
A) Beta, Gamma, Alpha, Delta
B) Alpha, Delta, Gamma, Beta
C) Gamma, Alpha, Delta, Beta
D) Delta, Beta, Gamma, Alpha

Quizplus · Accepted Answer

$$\begin{array} { | l | r | r | r | r | } 
\hline & \text { Alpha } & \text { Beta } & \text { Gamma } & \text { Delta } \
\hline \text { Selling price per unit } & 100 & 150 & 90 & 200 \
\hline \text { Variable costs per unit } & 45 & 85 & 30 & 110 \
\hline \text { Contribution per unit } & 55 & 65 & 60 & 90 \
\hline \text { Labourhours } & 2 & 4 & 3 & 4 \
\hline \text { Contribution per labour hour } & 27.50 & 16.25 & 20.00 & 22.50 \
\hline \text { Ranking } & 1 & 4 & 3 & 2 \
\hline
\end{array}$$

Use the Following Information for Question : Four Products Are